New Delhi, 6/5: The Reserve Bank of India may extend interest-rate hikes amid worries inflation would exceed its mandated target in the next six months, although a steep three-quarter point increase at the June monetary policy meeting isn’t implied by its recent move, people familiar with the matter said.
The central bank opted for an out-of-cycle hike on Wednesday because it didn’t want to shock markets with super-sized increases in the June and August meetings, even as it steps up efforts to prevent inflation from overshooting the mandated 2-6% target range, according to people, who didn’t want to be identified.
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