Economists say RBI shift points to more rate hikes
In short
Economists say the RBI’s move is a hawkish shift. The MPC raised the repo rate by 25 bps and changed its stance to calibrated tightening, and they think more hikes of at least 50 bps could still happen.
This matters because markets and borrowers may face higher rates ahead. The reporting does not say when the next hike could come or whether it will happen at all.
What the reporting says
After the MPC raised the repo rate by 25 bps and changed its stance to calibrated tightening, economists said the easing cycle appears to be over. BusinessLine’s summary said further hikes of at least 50 bps remain on the table, based on the central bank’s hawkish shift. The immediate implication is expectations of more tightening, but the actual timing and size of any future hike are not stated.
Why it matters
After the MPC raised the repo rate by 25 bps and moved to calibrated tightening, economists interpreted the decision as a sign that the easing cycle is over. The summary says further hikes of at least 50 bps remain possible, which matters for borrowers, banks and rate-sensitive markets. The reporting does not say which economists made the call or when any additional move might occur.