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RBI to hike Repo Rate to 5.9% by Dec-end

Published on June 15, 2022
Current Context: Fitch Ratings expects RBI to raise the policy repo rate further to 5.9% by December 2022 due to a deteriorating inflation outlook.
RBI to hike Repo Rate to 5.9% by Dec-end
  • Fitch expects the repo rate to rise further to 6.15% by the end of 2023 compares to the forecast of 5%.
  • According to them, the Indian economy faces drawbacks such as a worsening external environment, elevated commodity prices, and tighter global monetary policy.
  • Fitch expects growth to likely improve in April - June quarter on a rebound in consumption as COVID-19 cases subsided towards end-March.
  • Compared to the last two monetary policies, RBI has hiked the interest rate by 90 basis points. Now, the repo rate stands at 4.9%.
  • By looking at statistics, Fitch lowered its Indian economy forecast to 7.8% in 2022-2023 compared to its previous estimate of 8.5%.
  • Apart from that Fitch upgraded India's sovereign rating to 'stable' from 'negative' after two years.


Q.1 As per the Fitch Report what will be the expected repo rate by the end of 2023?
a. 7.21%
b. 6.23%
c. 6.15%
d. 5.5%
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