RBI's starts 3-day MPC meet; likely to moderate interest hike?

As the Reserve Bank of India (RBI) begins its three-day monetary policy meeting, RBI Governor Shaktikanta Das is expected to announce the final rate hike of 2022 to curb inflation.

According to experts, after three back-to-back 50 basis points hike in interest rates, the Reserve Bank may opt for a lower rate increase of 25-35 bps in lending rates at its coming monetary policy review amid retail inflation showing signs of moderation and the need to push growth.

In addition to the domestic factors, the RBI may also take some cues from the US Federal Reserve which hinted at a lower rate hike of 50 basis later in the month. In order to combat inflation, the Federal Reserve had earlier hiked the key interest rates four times by 75 basis points (bps) each.

The Reserve Bank of India (RBI) will come out with its next bi-monthly policy review on December 7 at the end of the three-day meeting of the MPC.