India’s economic growth likely to slow down if RBI hikes up the repo rate: says Somanathan – Finance Secretary of India

The Central Bank increased its overnight lending rate by 40 basis points to 4.40 percent, followed by an out-of-cycle meeting of the monetary policy committee or MPC on May 4th, boosting EMIs even further.

However, experts are of the conclusion that the inflation projection is likely to be raised more by Central Bank for the current fiscal year at its June monetary policy meeting; interest rates will increase more and by the end of March 2023, the repo rate will be as high as 5.15%, according to some experts.

India’s economic growth rate is subjected to slow down if the central bank boosts interest rates.” T.V. Somanathan, India”s Finance Secretary, agrees.