Even when the Monetary Policy Committee of the Bank of India (RBI) will meet next week, the Governor of RBI Shaktikanta Das said the hope of the increase in interest rates was no-brainer given the high level of inflation in force in the country. Although he does not give a picture of how many interest rates can raise interest rates, experts say the level of the main repo can increase 25-50 basis points (BPS).

The Monetary Policy Committee Six Members (MPC) will meet 6-8 June to decide on interest rates in the country. Policy decisions will be announced on the last day of the meeting, June 8.

Head of Economist Crisil D K Joshi hopes that the repo level will increase by 50 basis points in the upcoming MPC policy review, while the Head of Bank of Baroda Economist Madan Sabnavis told News18.com that MPC could decide to increase tariffs by 25-35 base points base points 25-35 points 25-35 points 25-35 points 25-35 points .

Suvodeep Rakshit, a senior economist in the institutional equities box, said: “We hope that the RBI raises the REPO level by 40 BPS in the June policy meeting. However, we must be open to an increase in interest rates in the range of 35-50 bps depending on how MPC wants to reach a pre-Pandemic Repo level of 5.15 percent or around the sign at the end of the August policy. “

Repo fares (the level of RBI lending money to commercial banks) is one of the external benchmarks mandated by RBI, based on which commercial banks decide on interest rates for various loans.

He added that the central bank is likely to increase the cash reserve ratio (CRR) in one of the policies that will come but will depend on how he sees long -lasting liquidity in the next few months. CRR is the percentage of cash that must be saved by banks in the VIS-à-VIS reserves of their total deposit.

We expect 50 BPS to increase CRR at the end of FY2023. Along with the increase in the level of repo, RBI will also revise the estimated inflation higher, it may indicate that inflation remains close to 7 percent for most CY2022. We hope that RBI will continue to focus on taking inflation and signifying its intention to continue to increase the pace and normalize liquidity, while not completely losing its growth given the uneven growth of growth, “said Rakshit.

Retail inflation in April was established at the highest eight years 7.79 percent, forcing RBI to raise interest rates in off-cycle monetary policy in May. In the April MPC meeting, the RBI had revised its retail inflation forecast to 5.7 percent for the current financial year 2022-23, compared to 4.5 percent that were projected before.

Vinod Nair, Head (Research) in Geojit Financial Services: “The end of the sale shows the lack of trust in the domestic market driven by concerns over the central bank policy. While in the global market, investors are waiting for the release of US job data. RBI is expected to increase the tariff of 25-35 bps and the US is fed by 50 bps. “

India’s ranking and research (Ind-RA) expects retail inflation on the average nine years of 6.9 percent in FY23, and RBI to increase the policy rate of at least 75 bps in the remaining FY23.

The increase can also be 100-125 bps but this will depend on incoming data, policy actions by the global central bank, the global geopolitical situation and the effect of its abundance on the Indian economy. The first level increase by RBI can be from 50 BPS in the June 2022 and 25 BPS policies in the October 2022 policy, “said the rating agency.

He also said that at the same time, the cash reserve ratio could also be climbed by 50 bps up to 5 percent at the end of-FY23.

In a recent interview with CNBC-TV18, Governor of RBI Shaktikanta Das said, “The hope of interest rate increases is no-brainer. There will be some improvements in the repo level but how much, I will not be able to tell now. “