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Below is View on RBI Pre-Monetary Policy June 2022 By Shanti Ekambaram, Group President- Consumer Banking, Kotak Mahindra

"The MPC has signalled a gradual withdrawal of accommodation in light of higher inflation. It is likely that the RBI's stance will be “Neutral” while it will stay committed to bringing back inflation closer to the targeted levels through all possible instruments. I expect a rate hike between 35-50 basis points in the June policy. Based on inflation data and external factors, including oil and commodity prices, expect a total of 100 to 150 bps increase in repo rate from the current 4.40%. However, it is important that fiscal and monetary policies move in tandem to bring inflation within targeted levels and provide support to economic growth.”

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