RBI seen raising rates by smaller 35bps in December, hiking again in early 2023: Report

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BENGALURU: The Reserve Bank of India will raise interest rates by a smaller 35 basis points to 6.25% in December, according to economists polled by Reuters who expect another modest move up early next year to curb lingering inflation pressures.
A strong two-thirds majority said it was still too soon for the central bank to take its eye off inflation, which slowed to 6.77% in October having stayed above the upper end of the RBI‘s 2-6% tolerance band all year.
The expectations for a more modest rate rise follow a series of 50 basis point hikes by the RBI, and coincides with expectations that the US Federal Reserve will shift to smaller rate rises at its policy meeting this month.
Thirty-three, or more than 60%, of the 52 economists polled between Nov. 22-30 said the RBI would raise its key repo rate by 35 basis points to 6.25% at its Dec. 5-7 policy meeting.
Eleven said it would…

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