Economist Lee Sue Ann, who works for the UOB Group, has proposed that the Reserve Bank of India (RBI) may increase its policy rate by 25 basis points during its meeting on April 6. The RBI's top priority is to reduce inflationary pressures, while also being aware of the continued transmission of input costs. The sustained nature of core inflation is a cause for concern.
Lee Sue Ann suggests that the RBI is likely to announce one last interest rate hike of 25bps, bringing the rate to 6.75%, during the April Monetary Policy Committee (MPC) meeting. Following this, the rate is expected to remain unchanged.
