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BENGALURU (Reuters) - The Reserve Bank of India will raise its main interest rate by 25 basis points on April 6 and then pause for the rest of the year, according to a Reuters poll of economists who said the central bank would still maintain its tightening stance. | 10:26pm
Inflation in India remains above the RBI's upper tolerance limit of 6%, reaching 6.52% in January and easing only slightly to 6.44% in February, a key reason for the RBI to hike again.
Inflation in Asia's third-largest economy remains above the central bank's upper tolerance limit of 6.00%, reaching 6.52% in January and easing only slightly to 6.44% in February, a key reason for the RBI to hike again.
Additionally, a majority of economists surveyed believe that the RBI would maintain the same interest rate level for the remaining part of the year.
The Indian central bank's 2013 playbook to buffer the domestic currency against steep declines and rebuild foreign exchange reserves is unlikely to prove fruitful in the current crisis as economic fundamentals are vastly different, analysts said.