RBI May Consider Sharper Rate Hike in December, Say SBI Economists

SBI economists have indicated that the Reserve Bank of India may pursue a more aggressive monetary policy stance in December, potentially raising rates by 50 basis points. This would represent a sharper pace of tightening compared to the recent hike announced on Wednesday, contingent on inflation trends and global economic conditions.

The central bank is navigating multiple pressures, including managing inflation risks while addressing concerns over rupee weakness and capital outflows. The economists' assessment suggests the RBI is weighing these competing factors as it charts its policy course for the coming month.