- It has been observed after an almost 8 years high of 7.79% in April, Consumer Price Index-based inflation moderated to 7.04% in May.
- The report also CPI moderated in May to 6.09% compared to 6.97% in April.
- The report also expected that the RBI could bring changes in a rate hike in August and even in October which leads to going higher than the pre-pandemic level by October to 5.5%.
- Recently RBI raised the short-term lending rate by 40 basis points in May and 50 basis points in June, taking the repo rate to 4.9%.
- Apart from that RBI also revised upwards its inflation projection to 6.7% for the current fiscal year.
Question:
Q.1 As per the SBI Eco Wrap Report what will be the expected hike in the policy rate of RBI in August & October?a. 4.2%
b. 5.2%
c. 5.5%
d. 6.2%
