Alongside the Fed expected rate hike to 75 bps, Indian financial markets now expect a sharp repo hike of at least 35bps from the RBI as well. With the sudden inflation rise of 7% last week due to high prices of select foods, the previous expected repo-rate of 25 bps, is now speculated to continue with two more consecutive increases in December and February 2023 at 25bps each, to push the terminal repo to 6.25%. Lower growth sacrifices were expected by the central bank, considering last month’s data.
Read More at The Times of India