RBI May Increase Repo Rate By 0.25 Percent From June, Preparing For Change in Liberal Stance

The Reserve Bank of India may increase the repo rate by half a percent in the coming two monetary policy reviews. It may increase by 25 basis points in June and 25 basis points in August. The effort of the central bank is to reduce the rate of inflation, due to which it will have to take such a step.

SBI Chief Economist Soumyakanti Ghosh said in a report that after hitting 6.95 per cent in March, it is likely to go above 7 per cent by September. During this, the good thing is that the government is continuously increasing investment. 10 lakh crores have been invested in the last two years.