Uday Kotak suggests 1% rate hike in FY2023

The Reserve Bank of India needs to raise benchmark interest rates by 1 per cent by the end of this year, In order to counter high inflation, Uday Kotak, the billionaire banker and the chief executive officer of Kotak Mahindra Bank said. Kotak suggested that the central bank could raise rates four times this fiscal, with hikes of a quarter percentage each. "Sharp increase in inflation estimate to 5.7% from 4.5% assuming 100$ oil. Exit q4 fy23 estimate 5.1%. Present Repo rate at 4%. If India has to move to 0% real rate that is inflation - interest rate =0, we need 1% increase of rates. 4 rate hikes of a quarter each?," Kotak said in a tweet Sunday.