Rate hike quantum to slow

The upcoming meeting of the Monetary Policy Committee (MPC) in December

will occur amid a moderation in domestic retail inflation and a headline GDP growth

print for Q2FY23 that was in line with expectations.

Buttressed by the divergence in views of some of the MPC members expressed in the minutes of the September

policy meeting, we expect the size of the repo rate hike to be restricted to 35 basis points (bps) in the next review

lower than the 50 bps each seen in the last three meetings.

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