RBI likely to raise interest rates to 5.50% in October as inflation widens

The Reserve Bank of India is expected to raise interest rates by 25 basis points to 5.50% in October, marking the first rate increase since 2023, according to a Reuters poll of economists. The move comes as inflationary pressures broaden across the economy.

Economists surveyed anticipate a second rate hike of similar magnitude in December. The monetary policy adjustments signal the RBI's response to rising inflation concerns affecting the Indian economy.