India's RBI says front-loaded rate hikes needed to tame inflation, shield growth | The Business Standard
Skip to main content
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Wednesday
May 28, 2025

Sign In
Subscribe
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
WEDNESDAY, MAY 28, 2025
India's RBI says front-loaded rate hikes needed to tame inflation, shield growth

Global Economy

Reuters
17 September, 2022, 11:15 am
Last modified: 17 September, 2022, 11:17 am

Related News

  • India's alarm over Chinese spying rocks the surveillance industry
  • Inflation, exchange rate shocks to intensify fiscal pressure in FY26
  • 31 more people pushed into Bangladesh through Kurigram, C’Nawabganj borders
  • 36 trafficked Bangladeshis return after serving jail terms in India
  • BSF pushes in 23 more people through Satkhira border, says BGB

India's RBI says front-loaded rate hikes needed to tame inflation, shield growth

Reuters
17 September, 2022, 11:15 am
Last modified: 17 September, 2022, 11:17 am
A Reserve Bank of India (RBI) logo is seen at the gate of its office in New Delhi, India, 9 November 2018. REUTERS/Altaf Hussain
A Reserve Bank of India (RBI) logo is seen at the gate of its office in New Delhi, India, 9 November 2018. REUTERS/Altaf Hussain

The Reserve Bank of India said on Friday it will have to front-load its monetary policy to fight stubborn inflation and shield medium-term growth in the world's fifth-largest economy.

Inflation in India has remained above the apex bank's tolerance level since January, prompting it to raise interest rates by a total of 140 basis points in the current cycle. The bank is widely expected to hike by another 25 to 50 basis points at its next meeting at the end of this month.

"At this critical juncture, monetary policy has to perform the role of nominal anchor for the economy as it charts a new growth trajectory," the RBI said in an article on the state of the economy that was included in its monthly bulletin.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

"Front-loading of monetary policy actions can keep inflation expectations firmly anchored and reduce the medium-term growth sacrifice."

The RBI said the August 2022 inflation reading of 7% was in line with its prognosis that inflation has peaked in April and will grudgingly edge down over time.

There was, however, a resurgence of food price pressures, mainly stemming from cereals, even as fuel and core components such as transport and manufacturing provided a modest measure of respite, the bank said.

"We maintain our view that inflation momentum should ease in Q3 and turn mildly negative in Q4. With base effects being favourable in the second half of 2022-23, inflation should moderate, although upside risks are in the air."

Aggregate demand in India is firm and poised to expand further as the festival season sets in, while domestic financial conditions remain supportive of growth impulses, the RBI said.

It also forecast the country's current account deficit to remain within 3% of the gross domestic product in the current fiscal year to March 2023.

"With portfolio flows returning and foreign direct investment remaining strong, this order of deficit is eminently financeable," it said.

Top News / World+Biz / South Asia

India / RBI / inflation

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Inflation, exchange rate shocks to intensify fiscal pressure in FY26
    Inflation, exchange rate shocks to intensify fiscal pressure in FY26
  • Screengrab from Google Maps shows traffic situation in Dhaka roads on the morning of Wednesday, 28 May 2025
    BNP, Jamaat rally day: Traffic likely to clog Dhaka roads, including Shahbagh, Nayapaltan, Kakrail
  • File photo of jamaat leader ATM Azharul Islam
    ATM Azharul Islam set free after acquittal in war crimes case

MOST VIEWED

  • Selim RF Hussain. Sketch: TBS
    BRAC Bank MD Selim RF Hussain resigns
  • Bangladesh Bank Governor Ahsan H Mansur. TBS Sketch
    Depositors need not worry as govt will take over banks before merger: BB governor
  • Graphics: TBS
    Suspicious banking activities surge by 56% since July: Cenbank
  • Photo: Collected
    DU student assaulted for protesting eve-teasing at Chadni Chowk
  • Illustration: TBS
    Bangladesh sees highest-ever per capita income of $2,820 in FY25, BBS provisional data shows
  • Officials protest inside the Secretariat on Tuesday, 27 May 2025, over a government ordinance amending the Public Service Act, 2018. Photo: Rajib Dhar
    Protest at Secretariat suspended as govt assures decision on ordinance tomorrow

Related News

  • India's alarm over Chinese spying rocks the surveillance industry
  • Inflation, exchange rate shocks to intensify fiscal pressure in FY26
  • 31 more people pushed into Bangladesh through Kurigram, C’Nawabganj borders
  • 36 trafficked Bangladeshis return after serving jail terms in India
  • BSF pushes in 23 more people through Satkhira border, says BGB

Features

In recent years, the Gor-e-Shaheed Eidgah has emerged as a strong contender for the crown of the biggest Eid congregation in the country, having hosted 600,000 worshippers in 2017. Photo: TBS

Gor-e-Shaheed Boro Maath: The heart of Dinajpur

1d | Panorama
The Hili Land Port, officially opened in 1997 but with trade roots stretching back to before Partition, has grown into a cornerstone of bilateral commerce.

Dhaka-Delhi tensions ripple across Hili’s markets and livelihoods

2d | Panorama
Photo: Collected

Desk goals: Affordable ways to elevate your study setup

2d | Brands
Built on a diamond-type frame, the Hornet 2.0 is agile but grounded. PHOTO: Asif Chowdhury

Honda Hornet 2.0: Same spirit, upgraded sting

2d | Wheels

More Videos from TBS

How protecting Dhaka’s rivers and canals from plastic waste

How protecting Dhaka’s rivers and canals from plastic waste

1h | TBS Programs
Jamaat leader ATM Azhar released from prison after 13 years

Jamaat leader ATM Azhar released from prison after 13 years

1h | TBS Today
Trump delays 50% tariffs on EU goods

Trump delays 50% tariffs on EU goods

12h | Others
Eid may be celebrated in Bangladesh on June 7

Eid may be celebrated in Bangladesh on June 7

12h | TBS Today
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net