First hike in over 3 years may not be last; repo rate can rise by another 75 basis points
The Reserve Bank of India (RBI) raised the key policy rate by 25 basis points, its first hike in over three years. Economists anticipate an additional increase of 50-75 basis points if inflation persists, which could further raise loan interest rates and dampen economic demand. The next policy review is expected to be crucial for assessing future rate adjustments.