RBI likely to hold rates in June as inflation and growth pull in opposite directions

Published on 7 May 2026

HSBC says hikes may wait for oil and supply chains

RBI is expected to keep interest rates unchanged in June, according to HSBC’s chief India economist. With energy costs rising and weather turning unpredictable, inflation pressures remain. At the same time, growth needs support, leaving the central bank balancing conflicting objectives. Any potential hikes are seen as delayed until global supply chains stabilize and oil prices cool.

June decision may keep rates unchanged, analysts expect
Rising energy costs and erratic weather keep inflation risk alive
RBI must balance inflation control with growth support
Hikes, if any, may depend on oil and supply chain stabilization

#inflation #interest rates #oil prices #economic growth #rbi

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RBI likely to hold rates in June as inflation and growth pull in opposite directions

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