Capital Macros: The Reserve Bank of India is expected to start raising policy rates soon.

Kuwaiti Macro's Shilan Shah stated in a report that in the face of increasing inflationary pressures, the Indian central bank is expected to soon begin raising policy interest rates. Despite the overall CPI rising to 3.9% in May, which is below the Indian central bank's target of 4%, this is the highest inflation data since February 2025. Due to the sharp increase in fuel prices after four price hikes last month, inflation has accelerated. The economist stated, "There may be more price hikes in the coming weeks." Wider supply chain disruptions will also begin to push up underlying inflation. Kuaiti Macro expects the Indian central bank to raise interest rates by 75 basis points in 2026, bringing the policy rate to 6.00%.