Rate hikes in next monetary policy meets ‘a no-brainer’, says RBI governor

Rate hikes in next monetary policy meets ‘a no-brainer’, says RBI governor

Rate hikes in next monetary policy meets ‘a no-brainer’, says RBI governor

New Delhi : RBI Governor Shaktikanta Das on Monday hinted at another interest rate hike in early June to bring down high inflation which has remained above the tolerance level for the past four months. The next meeting of the RBI’s Monetary Policy Committee (MPC) is scheduled for June 6-8. Though the partial excise duty cut on fuels will somewhat tame inflation by up to 40 basis points, the step is considered too inadequate in this regard.

It’s a no-brainer

Expectation of rate hike, it's a no-brainer. There will be some hike but how much I will not be able to tell now. Shaktikanta Das, RBI Governor

“Expectation of rate hike, it’s a no-brainer. There will be some hike but how much I will not be able to tell now,” he said in an interview to a TV channel. The RBI on May 4 hiked the repo rate for the first time in nearly four years by 40 basis points to 4.40%. It has already upped its inflation forecast for 2022-23 to 5.7% from 4.5% and lowered its GDP estimate to 7.2% from 7.8% projected earlier.