India's RBI poised to raise rates as global central banks act on soaring energy costs
The Reserve Bank of India's Monetary Policy Committee is expected to increase interest rates for the first time since February 2023 amid higher energy prices and global central bank tightening.
The six-member MPC is slated to meet on Wednesday and likely lift rates, following recent hikes by the US Federal Reserve, the European Central Bank and the Bank of Japan. While India’s domestic growth remains robust, the committee must weigh rising inflation against currency and capital-flow pressures. Excess liquidity in the system adds another layer of complexity to the decision.
Why it matters
Higher rates could affect borrowing costs, inflation and capital flows for Indian households and businesses.
How this story developed
- Sep 22 How first-time buyers can protect mortgage rates before an offer is accepted
- Oct 6 Nationwide launched a reservation product that can lock a quoted mortgage rate for up to 90 days after a decision in principle.
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