Investors have loaded up on bets that the Reserve Bank of India will raise rates this week, warning that it risks falling behind the curve as inflation quickens, growth remains resilient and major central banks turn more hawkish.
Nearly 60% of economists polled by Reuters, 35 out of 61, expect a 25-basis-point rate hike at its policy meeting on Wednesday. Market pricing is more decisive with swap markets fully pricing in an increase in borrowing costs.
