Key points:

• The RBI held the benchmark Repo rate at 6% at its February meeting. This decision was in line with expectations.
• They also raised their inflation outlook, and highlighted upside risks to the forecasts.
• In light of the elevated inflation outlook, NAB Economics has changed its interest rate projection.
• In particular, we are forecasting a rate hike in the December quarter 2018, which will raise the Repo rate to 6.25%. Risks to our forecasts are evenly balanced.

For further details, please see the attached document:

• India Monetary Policy: February 2018 (PDF, 408kb)