RBI may up inflation forecast in next MPC meeting; rate hike on cards: Sources

RBI may up inflation forecast in next MPC meeting; rate hike on cards: Sources

The MPC, headed by the RBI Governor, is scheduled to meet between June 6 and June 8. It has been mandated to keep retail inflation in the range of 2-6 per cent.





May 12, 2022 / 07:12 AM IST





The Reserve Bank is likely to raise inflation projections in the Monetary Policy Committee (MPC) meeting next month and would also consider a rate hike to tame inflation which is above its comfort level, sources said.

The MPC, headed by the RBI Governor, is scheduled to meet between June 6 and June 8. It has been mandated to keep retail inflation in the range of 2-6 per cent.

Sources said the MPC would review the inflation scenario in the next meeting. The MPC had not changed inflation projections in an off-cycle meeting earlier this month.

However, last month RBI had sharply raised its inflation projection for the current fiscal year to 5.7 per cent from the earlier forecast of 4.5 per cent due to geopolitical tensions.

"Taking into account these factors and on the assumption of a normal monsoon in 2022 and average crude oil price (Indian basket) of USD 100 per barrel, inflation is now projected at 5.7 per