Home loan EMI increases pushed back as RBI signals pause on rate hikes

Economists have revised their expectations for Reserve Bank of India rate increases, now anticipating hikes in December or later rather than sooner. The shift comes as core inflation remains subdued, contrary to earlier forecasts. The RBI maintained its current rates and cut inflation projections for the fiscal year, signalling a more cautious approach to monetary policy.

Overnight indexed swap rates indicate fewer rate hikes expected over the next twelve months. This contrasts with some other Asian economies that have responded more aggressively to oil price movements, underlining India's distinct monetary policy trajectory.