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Yes Bank Report: RBI May Hike Repo Rate in October Amid US Hawkish Stance
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CNBC Awaaz•20-09-2026, 16:54
Yes Bank Report: RBI May Hike Repo Rate in October Amid US Hawkish Stance
- •Yes Bank's research report indicates an increased probability of RBI raising interest rates in October.
- •Pressure on RBI to hike rates intensified due to the US Federal Reserve's hawkish stance and narrowing India-US interest rate differential.
- •RBI's decision will hinge on domestic economic growth and the prevailing inflation situation.
- •The impact of a rate hike will also depend on RBI's effectiveness in controlling excess liquidity.
- •The US Federal Reserve recently raised its policy interest rate by 25 basis points, bringing it to a range of 3.75 to 4 percent.
Key Questions Answered
Following the US Federal Reserve's hawkish stance and the narrowing interest rate differential between India and the US, pressure on the RBI to raise interest rates has increased.
The central bank's decision to raise rates will depend on domestic economic growth, the inflation situation, and how effectively the RBI can bring excess liquidity under control.
The US Federal Reserve increased its policy interest rate by 25 basis points, bringing the rate into the range of 3.75 to 4 percent.
