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RBI to Make Big Decision Next Week: Repo Rate Hike Expected, Could Impact Entire Country.
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CNBC Awaaz•04-10-2026, 16:43
RBI to Make Big Decision Next Week: Repo Rate Hike Expected, Could Impact Entire Country.
- •RBI may increase the repo rate by 25 basis points in October, according to a Union Bank of India report.
- •Interest rates could rise further if inflation risks persist in FY 2026-27, potentially pushing the repo rate to 5.75-6%.
- •Indian government bonds were under pressure in September due to high crude oil prices and rising global bond yields.
- •The yield on 5-year government bonds increased by 45 basis points, and 10-year government bonds by 24 basis points in September.
- •The government plans gross borrowing of Rs 7.86 lakh crore in the second half of FY 2026-27 by issuing government bonds.
Key Questions Answered
The Reserve Bank of India may increase the repo rate by 25 basis points in October, which could potentially push the rate to between 5.75 and 6.00 percent later in the fiscal year.
Indian government bonds remained under pressure in September due to high crude oil prices, rising global bond yields, open market bond sales by the RBI, and increased long-term bond sales.
The government plans to undertake gross borrowing of Rs 7.86 lakh crore through issuing government bonds in the second half of fiscal year 2026-27.
