Mumbai [Maharashtra]: Reserve Bank of India (RBI) Governor Sanjay Malhotra has said the duration and extent of the interest rate hike cycle will depend on actual economic growth and inflation trends.
The RBI released the minutes of the Monetary Policy Committee (MPC) meeting held from 5 to 7 October, during which all six members voted to raise the repo rate by 25 basis points to 5.5 per cent. This was the first rate hike in nearly four years.
The Governor also noted that inflationary pressures were broadening, with 37 per cent of the commodities in the Consumer Price Index (CPI) basket recording inflation above four per cent in August, compared with 20 per cent in March.
The RBI has projected GDP growth at 7.1 per cent and retail inflation at 5.2 per cent for 2026-27. Inflation is expected to rise to six per cent in the October-December quarter.
[AIR News]