Mumbai, May 12 (KNN) The Reserve Bank of India (RBI) is expected to increase its inflation projection for the current financial year and consider hikes in interest rates at its June monetary policy meeting.

As per media reports, the inflation forecast by the central bank will be raised again during the meeting of MPC which will take place from June 6-8.

Earlier this month the RBI decided to raise the repo rate by 40 basis points to 4.40 per cent in a bid to tame the rising inflation in the country.

In April, RBI raised its inflation forecast for the current fiscal year to 5.7 per cent, 120 bps above its forecast in February, while cutting its economic growth forecast to 7.2 per cent for 2022-23 from 7.8 per cent.

Last month, the Central Bank kept two benchmark economy-wide interest rates unchanged at record lows, a signal that the RBI continued to prioritize growth recovery despite inflationary winds sweeping the world and India in the aftermath of the Russia-Ukraine conflict.  (KNN Bureau)