US rate hike intensifies pressure on RBI to act on inflation
The US Federal Reserve's first rate increase since 2023 has mounted fresh pressure on India's monetary policy. The rupee has breached 96 against the dollar, prompting economists to debate when the Reserve Bank of India might raise rates in response.
Emkay Global projects an October rate hike as increasingly likely, while HDFC Bank suggests the RBI could defer action until December. The central bank faces competing pressures from inflation, growth concerns, energy prices and currency weakness as it frames its next move.
