New Delhi, Oct. 6 -- As the Reserve Bank of India's (RBI) Monetary Policy Committee concludes its meeting on Wednesday, expectations of a rate hike, heralding the start of tighter monetary policy, have risen sharply. Mint explains what has driven the shift and what it could mean for the economy.

Quite high. Nine out of 10 economists polled by Mint last week are certain that the RBI will increase the repo rate, its benchmark interest rate, on Wednesday.

This is because the macro environment has changed dramatically in recent weeks. Inflation is above the RBI's comfort zone and inflationary pressures are rising due to higher Oil and other commodity prices. Global supply chain shocks remain.

That apart, advanced economies have started tig...