Interest Rate Hike

Jefferies has named ICICI Bank, State Bank of India (SBI) and Axis Bank as its top picks among large-cap banks post RBI MPC outcome.

From the RBI's shift to calibrated tightening and health-insurance copayments to India's tax reform journey, aviation security, today's opinions examine policy trade-offs and institutional change

Our base case pencils in the headline CPI inflation to average at 5 per cent in FY27, with risks tilted to the upside.

The more important signal from here will be the RBI's forward guidance, analysts said, and whether this marks the beginning of a broader tightening cycle.

The Governor acknowledged that price pressures are increasingly extending beyond food and fuel.

Nearly 60% of ​economists polled by Reuters, 35 out of 61, expect a 25-basis-point rate hike at RBI's policy meeting ​on Wednesday

We need to watch how entrenched inflation is and how demand-led growth is

Record inflows from Indians abroad have left banks flush with cash, pushing overnight rates below the RBI's 5.25 per cent policy rate as inflation pressures build

Beyond February 2027, Nomura expects the probability of further rate increases to diminish, citing the potential for a slowdown in consumption.

With global central banks raising rates, RBI may need to drain excess banking liquidity and align overnight rates with the repo rate before embarking on a fresh tightening cycle

Fed expected to hike rate and RBI's recent minutes suggesting a likely start to rate hike cycle, could pave the way for yields to increase, said Elara Securities.

In a move set to reaffirm the ECB as the most hawkish central bank among the Group of Seven, a quarter-point increase on Thursday has been widely signaled

Deputy Governor Poonam Gupta flagged a possible rate hike later this year as policymakers grew more wary of inflation risks despite retaining a neutral stance

BofA Global Research expects the US Federal Reserve to raise rates three times in 2026, citing resilient economic data and expectations of a hawkish Fed under Kevin Warsh

In a widely expected move, the BOJ decided to raise its short-term policy rate to 1 per cent from 0.75 per cent, taking borrowing costs to levels unseen since 1995

Rupee fall in 2026: Emkay Global warns India may need rate hikes by RBI, tighter remittance rules and other policy measures to defend the rupee if crude oil prices remain above $100 per barrel

SBI report says India has seen fewer instances of interest rate hikes since the flexible inflation targeting regime began, with the third five-year phase set to start next month

UBS sees further upside for broad commodities in 2026, driven by primarily by metals, their analysts said in a recent note.

In an event-heavy week ahead, stock markets' movement would highly depend on macroeconomic data announcements, global trends, RBI's interest rate decision and trading activity of foreign investors, analysts said. India's industrial production data for October 2025 will be released on December 1, an official statement said on Friday. Moreover, the November automobile sales data on Monday would also drive sentiments in the markets. "This week features a heavy data calendar that could influence volatility. Domestic focus will be on monthly auto sales, followed by the release of HSBC manufacturing, services, and composite PMI readings. The most crucial event will be the RBI's monetary policy on December 5, where commentary on inflation, growth, and the rate-cut outlook will be closely tracked," Ajit Mishra SVP, Research, Religare Broking Ltd, said. India's economy grew at a higher-than-expected 8.2 per cent - the fastest pace in six quarters - in July-September, as front-loading of ..

Upon winning the race, Takaichi made clear the government will take the lead in setting fiscal and monetary policy - and that her priority would be to reflate demand