RBI Seen Starting Rate-Hike Cycle, Repo Could Rise to 6% by FY27-End: Reports

RBI seen beginning rate-hike cycle, repo rate may reach 6% by FY27 as inflation risks rise: Reports

Union Bank expects the MPC to raise the repo rate by a quarter percentage point to 5.50% in the current review and shift towards a calibrated tightening stance

RBI seen starting rate-hike cycle, repo could rise to 6% by FY27-end: Reports

The Reserve Bank of India is likely to increase the repo rate to combat rising inflation and support stronger growth. Reports indicate that a rate-hike cycle of 75 basis points is anticipated, potentially reaching 6 percent by FY27. While inflation drives this tightening, geopolitical factors could impact the extent of rate increases. ICICI Bank has raised its CPI inflation forecast based on core inflation trends and global developments.