Lee Sue Ann, Economist at UOB Group, suggests the RBI could raise the policy rate by 25 bps at its meeting on April 8.

Key Quotes

“The looming inflation risks in FY2022/23 will be a persuasive factor for RBI to finally jump on the hike wagon and introduce its first rate hike in 2Q22 to 4.25%.”

“We also pencil in further hikes of 25 bps for both 3Q22 and 4Q22 to finally bring the repo rate to 4.75% at the end of 2022.”