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RBI Likely to Hike Interest Rates Further in December Policy Experts Predict
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News18•07-10-2026, 15:30
RBI Likely to Hike Interest Rates Further in December Policy Experts Predict
- •Experts predict the Reserve Bank of India will implement another rate hike of up to 50 basis points during its upcoming December policy meeting following a shift to a calibrated tightening stance.
- •The RBI recently raised its benchmark interest rate by 25 basis points to 5.50 percent in response to rising inflation and a weakening currency.
- •Financial institutions like Bajaj Finance have already responded by raising interest rates on fixed deposits by up to 40 basis points across various tenures.
- •Economists highlight that factors such as poor monsoons, rising commodity prices, crude oil volatility, and geopolitical tensions will continue to drive future monetary policy decisions.
Key Questions Answered
The Reserve Bank of India raised its benchmark interest rate by 25 basis points to 5.50 per cent.
The next bi-monthly monetary policy is due on December 4.
Bajaj Finance raised interest rates on its fixed deposits by 15 to 40 basis points across all tenures ranging from 12 to 60 months, taking effect from October 7.
