Will RBI Announce Steep Rate Hikes? Nomura Sees up to 50 Bps Increase by Dec, Dismisses 125 Bps Hike Fears
Nearly 60% of economists in a Reuters poll expect the central bank to lift its repo rate to 5.50% as inflation quickens.
- The Reserve Bank of India is expected to raise interest rates by 25 basis points to 5.50% in October, marking the first increase since 2023.
- Rising inflation hit 4.82% in August, exceeding the Reserve Bank's 4% medium-term target, while the rupee weakened about 6% this year, pressuring the central bank to act.
- Nearly 60% of economists polled by Reuters expect the 25 basis point hike, while BofA Securities forecasts a total of 100 basis points of increases through the first half of 2027.
- Indranil Pan, chief economist at Yes Bank, said the central bank is "possibly slightly behind the curve" and must hike rates because the Federal Reserve has already begun.
- Poll medians suggest rates will remain at 5.75% until mid-2028, potentially marking one of the shallowest rate-hiking cycles for the Reserve Bank in at least a decade.
22 Articles
22 Articles
Economists expect RBI rate hike in October
India’s central bank may raise interest rates at its October meeting as persistent inflation and currency pressure test policymakers. Nearly 60% of economists surveyed expect the Reserve Bank of India to increase its key interest rate. The forecast reflects inflation that has repeatedly exceeded the RBI’s targets. Global central banks are facing similar price pressures. […]
Rising oil prices, inflation to create headwinds for India’s economic growth: BNP Paribas - The Tribune
India’s economic outlook is likely to face increasing pressure in the coming months as higher crude oil prices and rising inflation weigh on consumption, rural activity and industrial momentum, BNP Paribas said in a research report.
aninews.in
KalingaTVRising oil prices, inflation to create headwinds for India’s economic growth: BNP Paribas
India’s economic outlook is likely to face increasing pressure in the coming months as higher crude oil prices and rising inflation weigh on consumption, rural activity and industrial momentum, BNP Paribas said in a research report.
HSBC Expects RBI to Raise Repo Rate by 50 Bps in FY27 Amid Strong Growth, Inflation Pressures
Get latest articles and stories on Business at LatestLY. India’s GDP growth in the second quarter of FY2026-27 came in significantly above the Reserve Bank of India’s (RBI) 7 per cent forecast, prompting expectations of a gradual rate-hiking cycle, according to a HSBC Global Investment Research report. Business News | HSBC Expects RBI to Raise Repo Rate by 50 Bps in FY27 Amid Strong Growth, Inflation Pressures.
The Economic Times
Times of IndiaWill RBI announce steep rate hikes? Nomura sees up to 50 bps increase by Dec, dismisses 125 bps hike fears
Nomura expects the RBI to pursue a limited tightening cycle, with a possible 50 bps rate hike by December, as food and energy pressures rise but underlying inflation remains contained.
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