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[BUSINESS] · India · 5 sources

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Part of situation: RBI raises repo rate to 5.50% amid rising inflation (7 clusters)

Reserve Bank of India rate hike forecasts rise amid inflation risks

Reserve Bank of India interest rate hike monetary policy inflation repo rate

Financial institutions are forecasting potential interest rate hikes by the Reserve Bank of India (RBI) in response to rising inflation and global economic risks.

SBI Research indicates that the balance of risks has shifted toward a 25-basis-point rate hike, citing broadening inflationary pressures and worsening global macroeconomic conditions. The report suggests the RBI may also upgrade its GDP and inflation forecasts for FY27. Additionally, SBI noted that CPI inflation rose to 4.82 percent in August from 4.45 percent in July.

Bank of America (BofA) Securities has provided a more aggressive forecast, suggesting the RBI could raise interest rates by a total of 100 basis points through the first half of 2027. BofA expects the first 25-basis-point increase to occur during the Monetary Policy Committee meeting scheduled for October 7, and anticipates a shift toward a stance of calibrated tightening in December.

Entities

Bank of America Securities · Monetary Policy Committee · Reserve Bank of India · SBI Research

Claims

What the coverage asserts, and how many sources carry each claim.

  • [○ 1 SOURCE] India's CPI inflation increased to 4.82 percent in August from 4.45 percent in July. bhaskarlive.in
  • [○ 1 SOURCE] Bank of America Securities expects the first 25-basis-point rate hike to occur at the October 7 monetary policy meeting. newsable.asianetnews.com
  • [○ 1 SOURCE] SBI Research suggests the RBI is likely to implement a 25-basis-point rate hike due to inflationary pressures and global macro risks. bhaskarlive.in
  • [○ 1 SOURCE] Bank of America Securities forecasts that the RBI may raise interest rates by a total of 100 basis points through the first half of 2027. newsable.asianetnews.com
  • [○ 1 SOURCE] SBI Research expects the RBI to increase GDP forecasts by 30 basis points and inflation forecasts by 20 basis points for FY27. bhaskarlive.in
  • [○ 1 SOURCE] Bank of America Securities predicts the RBI will shift its monetary policy stance to calibrated tightening in December. newsable.asianetnews.com

Sources

Balance of risks tilts decisively towards 25 bps rate hike: SBI report [bhaskarlive.in]
Balance of risks tilts decisively towards 25 bps rate hike: SBI report [morungexpress.com]
SBI Research makes case for 25-basis-point RBI rate hike [www.nationalheraldindia.com]
Balance of risks tilts decisively towards 25 bps rate hike: SBI report [www.socialnews.xyz]
RBI may hike interest rates by 100 bps by H1 2027, says BofA [newsable.asianetnews.com]