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With inflation showing no signs of subsidence, the RBI is likely to raise policy rates again in the three-day Monetary Policy Committee (MPC) meeting beginning Monday. The results of the meeting will come on Wednesday.
Experts say that this time the repo rate may increase by at least 0.40 percent. It is expected to increase further in the coming months.
Madan Sabnavis, Chief Economist, Bank of Baroda, said that this meeting is important in view of the upcoming steps of RBI on economic growth and inflation. The repo rate will not increase by more than 0.25-0.35 per cent. The main reason for this is the signal received in the May meeting, in which the MPC was not in favor of a big hike in the repo rate.
Housing.com Group CEO Dhruv Agarwal says that in view of inflation, the policy rate may increase again. The rate hike should be gradual so that the growth of the real estate industry is not affected.
On the other hand, Bank of America Securities said that the central bank will increase the repo rate by 0.40 percent this time and 0.35 percent in August. RBI had earlier increased the repo rate by 0.40 per cent in May without any specific schedule.
