RBI to hike repo rate by 25 bps in December, say experts

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RBI to hike repo rate by 25 bps in December, say experts

In a move to combat rising inflation, the Reserve Bank of India (RBI) is expected to hike the repo rate by 25 basis points (bps) in December, taking it to 6.50%, according to a poll of experts by The Economic Times. This would be the fourth consecutive rate hike by the RBI this year.

The RBI has been raising interest rates in an effort to cool the economy and bring inflation under control. Inflation in India has been running above the RBI's target of 4% for several months, and it is currently at 7.41%.

The latest poll of experts found that 23 out of 25 economists surveyed expect the RBI to hike the repo rate by 25 bps in December. The remaining two economists expect a 50 bps hike.

The experts believe that the RBI is likely to continue raising interest rates in the coming months as inflation remains elevated. However, they also believe that the pace of rate hikes may slow in the new year.




The RBI's decision on interest rates will be closely watched by businesses and consumers. Businesses are concerned that higher interest rates could hurt economic growth. Consumers are concerned that higher interest rates could make it more expensive to borrow money.

The RBI is likely to balance the need to control inflation with the need to support economic growth. A 25 bps rate hike is seen as a compromise that could help to achieve both goals.

Conclusion


The RBI's decision on interest rates will have a significant impact on the Indian economy. A 25 bps rate hike is likely to be seen as a positive step by investors, but it could also have negative implications for businesses and consumers. The RBI will need to carefully weigh the competing risks before making a decision.

RBI
repo rate
interest rate
inflation
economic growth

Title: RBI to hike repo rate by 25 bps in December, say experts
Meta Description: The Reserve Bank of India (RBI) is likely to hike the repo rate by 25 basis points (bps) in December, taking it to 6.50%, according to a poll of experts by The Economic Times. This would be the fourth consecutive rate hike by the RBI this year.
Keyword Density: RBI, repo rate, interest rate, inflation, economic growth
H1 Heading: RBI to hike repo rate by 25 bps in December, say experts
H2 Subheading: Experts Predict Another Repo Rate Hike by RBI
Internal Linking: Link to other relevant blog posts or articles on the RBI, repo rate, or inflation.
External Linking: Link to credible sources of information, such as the RBI website or the Ministry of Finance website.

Links to Credible Sources:

RBI website: https://www.rbi.org.in/
Ministry of Finance website: https://finmin.nic.in/


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