'RBI may go in for 25 basis point interest rate hike in MPC meet next month'

In its last policy meeting held in February, RBI had raised the policy rate or repo by 25 basis points to 6.50 per cent

MUMBAI: With retail inflation remaining above the comfort level of 6 per cent and most global peers including US Fed continuing hawkish stance, the Reserve Bank of India too may go in for a 25 basis points hike in the bi-monthly monetary policy to be announced on April 6, opined experts.

The Monetary Policy Committee (MPC) of the Reserve Bank will be meeting for three days on April 3, 5 and 6 to take into account various domestic and global factors before coming out with the first bimonthly monetary policy for fiscal 2023-24. The two key factors which the committee will deliberate intensely while firming up the next monetary policy are elevated retail inflation and the recent action taken by central banks of the developed nations especially the US Federal Reserve, European Central Bank and Bank of England.

The Reserve Bank on India (RBI) has been raising benchmark rates since May 2022 to contain inflation which has been largely driven by external factors, especially the disruption of the global supply chain following the outbreak of the Russia-Ukraine war.

In its last policy meeting held in February, RBI had raised the policy rate or repo by 25 basis points to 6.50 per cent.