Fitch anticipates a 25 basis point rate increase by the RBI tomorrow and a hold in 2023.

 

The ratings agency kept its FY23 GDP growth prediction for India at 7 percent, but it reduced its FY24 prediction by 50 basis points to 6.2 percent.

According to Fitch Ratings, the Reserve Bank of India (RBI) may raise the repo rate by 25 basis points on December 7 before remaining on hold for the entirety of 2023.

Fitch stated in the December edition of its Global Economic Outlook report, which was published on December 6, that "the RBI has raised rates by a cumulative 190 basis points since the start of the tightening cycle in April 2022, lagging behind the (US) Fed's 350 basis points increases over the same period."

On December 7, at 10 a.m., RBI Governor Shaktikanta Das is scheduled to announce the Monetary Policy Committee's (MPC) decision, with economists anticipating a 35 basis point increase in the repo rate to 6.25 percent.