Sakshi Gupta

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RBI hikes repo rate for first time since 2023

Expects 50-75 bps more in hikes; says the RBI is back to fine-tuning liquidity

India's central bank raised its benchmark lending rate by a quarter point to 5.5% on October 7, the first increase in nearly four years. September inflation came in at 5.54%, above the RBI's 5.2% forecast for the fiscal year.

Updated Oct 22

Notable Quotes

We expect another 50-75 basis points in rate hikes over the coming months.

from RBI hikes repo rate for first time since 2023 · Updated Oct 22

As liquidity surplus has normalised, we are back to fine-tuning operations and further durable liquidity absorption measures like open market sale of bonds or foreign exchange sell/buy swaps may not be needed further.

from RBI hikes repo rate for first time since 2023 · Updated Oct 22