After RBI's rate increase, the debate turns to how much tightening comes next
Economists differ on the next move after the repo rate reached 5.5%; a larger December increase remains a forecast.
The Reserve Bank of India's October 7 increase in the repo rate to 5.5% has shifted attention to the next policy meeting. The quarter-percentage-point rise came with a stance of calibrated tightening, according to The Indian Express's October 8 report.
SBI economist Soumya Kanti Ghosh has argued for a further half-percentage-point increase by December, or earlier. That is an economist's assessment, not an announced RBI decision. Other economists surveyed in the report generally expected a smaller, quarter-point move in December, underlining the uncertainty over the path ahead.
Inflation remains central to the discussion. The RBI raised its financial-year inflation projection to 5.2% from 5%, with a 6% forecast for the October–December quarter. These are projections rather than final inflation readings.
The next scheduled policy announcement is December 4. Until the committee decides, readers should distinguish the rate already in force from predictions about future action. Wednesday's increase is confirmed; the timing and size of any subsequent move remain open.