The consensus has come around to our view that the Reserve Bank of India (RBI) will hike the repo rate by 25bp to 5.50% at the conclusion of the upcoming MPC meeting on Wednesday 7th October. After all, rising inflation has reduced the scope for policymakers to remain on the sidelines, while excessive bank liquidity will be a factor too. Further ahead, we think the repo rate will rise to 6.00% by the first half of 2027, which is still a more hawkish view than the consensus.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.
