Cycle of rise in key policy rates may be extended

The cycle of upward revision in key policy rates by the Reserve Bank of India (RBI) is likely to be extended, owing to the high prices of commodities, according to economists. Many economists also said the pricing power of producers posed upside risks to inflation.  Market observers have now revised their outlook on policy rate increases, following higher-than-expected inflation in March. To tame rising inflation, RBI may raise rates by 75-100 basis points in the current financial year, they say.

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