The Reserve Bank of India (RBI) will announce its bi-monthly monetary policy today. The RBI’s Monetary Policy Committee (MPC) began its three-day deliberation on Wednesday. Economists expect the RBI to announce a hike of 50 basis points in the repo rate today. The repo rate currently stands at a pre-pandemic level of 5.4 percent, and a 50 basis point hike on Friday will take it to 5.9 percent. The RBI has since May raised the repo rate by 140 basis points.
The policy review comes at a time when major central banks are staring at warnings of a global recession from the IMF and the World Bank. Central banks around the globe face the Herculean task of taming inflation without causing an economic slowdown.