India: RBI expected to hike rates this week – UOB

Economist Lee Sue Ann at UOB Group suggests the RBI could raise the policy rate by 25 bps at its meeting on April 6.

Key Quotes

“RBI’s policy priority is containing inflation pressures while being mindful of the ongoing pass-through of input costs, and the stickiness of core inflation is ‘a matter of concern’.”

“We believe the RBI is likely to deliver one final interest rate hike of 25bps, to 6.75%, at the Apr MPC meeting, and keep it unchanged thereafter.”