India may see its first interest rate hike in nearly four years.

With inflation continuing to rise and the rupee approaching a record low, policymakers have been forced to shift course, and the Reserve Bank of India is expected to raise interest rates on Wednesday for the first time in nearly four years. Once it does, the RBI will join Asian peers that have already begun tightening policy, and it will also be the first rate hike under Governor Sanjay Malhotra, who took office in December 2024 and presided over a series of rate cuts last year. Of 41 economists surveyed by media outlets, 35 expect the six-member monetary policy committee to raise the benchmark rate by 25 basis points to 5.50%, while the rest expect it to stay put. The committee is expected to maintain a neutral policy stance, keeping its options open for future moves.