Stories
RBI Will Hike Repo Rate By 0.50 Percent In December Says SBI Economists
N
News18•07-10-2026, 20:00
RBI Will Hike Repo Rate By 0.50 Percent In December Says SBI Economists
- •Economists at State Bank of India predict a steeper 0.50 percent rate hike by the RBI in the December monetary policy review.
- •The Reserve Bank of India recently raised its benchmark repo rate by 25 basis points to 5.50 percent.
- •Global conditions are expected to become more volatile, making a repo rate target of 6 percent the best option according to SBI.
- •The SBI report also emphasized the need for a clear artificial intelligence policy to boost capital flows and support the rupee.
Key Questions Answered
Economists at the State Bank of India predicted that the RBI will raise the key repo rate by a steeper 0.50 per cent at the upcoming monetary policy review in December.
SBI recommended implementing a clear artificial intelligence policy to facilitate capital flows, introducing a minimised long-term capital gains tax structure, widening the effective interest rate corridor via a higher MSF rate, and continuing liquidity management measures to support the rupee.
The Reserve Bank of India raised its benchmark repo rate by 25 basis points to reach 5.50 per cent on Wednesday, marking its first rate hike in nearly four years.
