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RBI June decision eyed as inflation strains forecast and rate hike bets surface

Economy
Published on 14 May 2026
RBI June decision eyed as inflation strains forecast and rate hike bets surface

Bond market already pricing tougher policy ahead of June

With RBI’s June meet approaching, economists are split: only a small share expects a policy rate hike this fiscal year, while most forecast a prolonged pause. Still, a majority expects inflation to run above RBI’s FY27 forecast, and bond markets are already reflecting the possibility of tighter monetary policy.

  • Economists are split on whether RBI will hike rates in this fiscal year
  • Most expect inflation to overshoot RBI’s FY27 forecast
  • Bond markets already imply tighter monetary policy
  • June decision could hinge on inflation persistence
Read the full story at The Economic Times

This summarization was done by Beige for a story published on The Economic TimesThe Economic Times

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