With inflation showing no signs of abatement, the Reserve Bank is likely to increase the benchmark lending rate in quick succession in its forthcoming monetary policy review on Wednesday, a hint for which has already been given by Governor Shaktikanta Das, opined experts.
The Reserve Bank of India is likely to raise the policy repo rate by 40 basis points on Wednesday and hike it further by 0.35 per cent in August, taking it to the pre-pandemic level of 5.15 per cent.
India's banks need to monitor the credit behaviour of restructured loans and the possibility of increased repayment slippages from sectors more exposed to the pandemic, the central bank said in a report on Friday.