RBI May raise Repo Rate in June : State Bank Of India

With the RBI prioritising inflation over growth, the repo rate is likely to be hiked by at least 25 basis points in June said State Bank of India’s (SBI) Ecowrap report on Wednesday.

In its monetary policy announced last week, the RBI had left the repo rate unchanged at 4 per cent. The six-member monetary panel has also decided to remain accommodative while focusing on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth.

“We now expect a 25 basis point (bps) rate hike each in June and August, with a cumulative rate hike of 75 basis points in the (interest rate hardening) cycle,” the report said.