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RBI Repo Rate Hike: SBI Research Predicts Further Interest Rate Increases By December
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News18•07-10-2026, 21:36
RBI Repo Rate Hike: SBI Research Predicts Further Interest Rate Increases By December
- •The Reserve Bank of India recently raised the repo rate by 25 basis points to 5.50 percent.
- •SBI Research predicts a larger hike of 50 basis points during the Monetary Policy Committee meeting in December.
- •SBI Group Chief Economic Adviser Dr. Soumya Kanti Ghosh stated that raising the repo rate to 6 percent by December is a viable option.
- •The RBI's policy stance has shifted towards monetary tightening amidst rising retail inflation forecasts.
Key Questions Answered
The Reserve Bank of India increased the repo rate by 25 basis points, bringing the interest rate to 5.50 percent.
SBI Research predicts that the RBI could hike the repo rate by another 50 basis points during the Monetary Policy Committee meeting in December, potentially reaching 6 percent.
The central bank has raised its GDP growth forecast for FY27 by 40 basis points to 7.1% and increased its retail inflation forecast by 20 basis points to 5.20%.
