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SBI economists expect RBI to raise repo rate 25 bps to 5.50%

• The MPC meets October 5-7 to decide on interest rates
• Economists cite rising inflation and global concerns behind the expected hike
• A rate hike would lift borrowing costs for Indian banks, autos and other rate-sensitive sectors

RBI Rate Hike Ahead? SBI Research Flags Inflation, Rupee Risks For October MPC

• SBI Research expects the RBI to begin raising rates in October
• It cites inflation, rupee weakness, global risks and tighter liquidity
• Higher-rate expectations may weigh on Indian borrowers and rate-sensitive stocks

MPC external members should be appointed full-time, says Chetan Ghate

• Chetan Ghate said external members of the MPC should be appointed full-time
• He said flexible inflation targeting has established a credible nominal anchor
• MPC appointment and coordination proposals matter to Indian rate expectations and interest-sensitive sectors

Fed may skip October but pull rate hike trigger in December

MPC internal members must think independently of RBI: Ashima Goyal

• Ashima Goyal says MPC members should think independently of the RBI
• The inflation-targeting band gives the MPC flexibility to look through temporary food inflation
• MPC independence and its approach to food inflation matter to rate-sensitive Indian stocks and banks