RBI hikes rates by 50bps, cuts GDP forecast

200 Das said, while India’s economy remains resilient, it is facing more headwinds from global geopolitical tensions and tightening monetary conditions.

200 Das also maintained the country’s retail inflation forecast at 6.7% for the current fiscal. He said the central bank would continue to focus on exiting its easy monetary policy in response to the “alarmingly high” inflation trend. 200 After this rate hike, the rupee recovered some of its losses, but was still supported by a stronger dollar and weaker market sentiment pressure. The currency fell by 0.2%.11, close to an all-time low. 200 Friday’s rate hike marks the fourth time the central bank has raised rates this year. Like most emerging market central banks, the Reserve Bank of India is raising interest rates to maintain the gap between U.S. and local rates and stem further rupee losses. 200