Page 2 - Repo Rate

Rate hike? Yes, but how long is the cycle?

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

Business Standard poll: RBI may hike repo rate by 25 bps in October meet

RBI may raise repo rate by 25 bps in October as higher crude prices raise inflation risks, while resilient growth could prompt an upward revision to the FY27 growth forecast

Nomura projects terminal repo rate of 5.75% following Oct, Dec hikes

The Reserve Bank of India (RBI) is likely to raise rates by 25 basis points in both October and December policy review meetings, reaching a terminal rate of 5.75 per cent, according to Japanese brokerage Nomura. The terminal rate represents the maximum or minimum target rate expected within a tightening or easing cycle, respectively. The likelihood of interest rate hikes is expected to decline starting in February 2027, driven by anticipated weaker consumer spending and a softer inflation outlook for the coming year. "The RBI hikes by 25 basis points in each of October and December to a terminal rate of 5.75 per cent, though there is some risk of a one-and-done hike. "We see the probability of rate hikes diminishing from February 2027 onwards, because of a potential consumption slowdown and a lower year-ahead inflation outlook," global financial services group Nomura said in a report on Tuesday. On inflation, Nomura expects cyclical pressures from food and energy prices to push up

Why the RBI may need to move in October

A rate increase would restore some real monetary restraint as inflation expectations rise and growth remains strong

PSBs see rate repricing as margin reprieve amid RBI rate hike expectations

High exposure to repo-linked RAM loans could help public sector banks reprice assets faster than deposits if the RBI raises rates

Post Fed rate hike, experts see up to 50bps RBI policy tightening in CY26

Experts said that the key point is not the size of the increase, but the change in direction, and expect the RBI to consider 50bps hikes in both the October and December policy meetings this year

Best of BS Opinion: Inflation projections demand monetary tightening

Today's opinions examine the RBI's inflation dilemma, rising life insurance surrenders, India's employment crisis, possible UPI charges and the shift from food to nutrition security

A dovish pause: RBI holds steady, rate hike off the table in FY27

The RBI cited uncertainties around the monsoon, El Nino, geopolitics and global trade while opting to keep policy rates unchanged for a fourth meeting

Status quo policy: Rate hike may still not be on the cards this year

RBI keeps the repo rate unchanged at 5.25%, raises FY27 growth forecast, trims inflation outlook and leaves the door open on future rate hikes amid global uncertainty

RBI MPC Outcome August 2026: RBI MPC keeps repo rate unchanged at 5.25%, maintains 'neutral' stance

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) on Wednesday kept the repo rate unchanged at 5.25 per cent.

RBI MPC Outcome August 2026: Why RBI has kept repo rate unchanged again | Inflation | GDP growth

The RBI has kept the repo rate unchanged at 5.25% for a second straight policy review. Why did the central bank hit pause, what does it expect for inflation and growth,

Realty firms welcome repo rate pause, see support for housing demand

Developers said stable borrowing costs would support buyer confidence and project execution, though Anarock cautioned that the pause may not revive mass-market housing

RBI MPC keeps repo rate unchanged at 5.25%, maintains 'neutral' stance

RBI MPC August meeting: At its policy meeting, held between August 3 and August 5, the committee maintained its 'neutral' stance

RBI MPC keeps repo rate at 5.25%, retains neutral stance amid global risks

The RBI retained its neutral monetary policy stance while revising its FY27 inflation forecast to 5 per cent and raising its economic growth projection to 6.7 per cent

RBI likely to keep rates unchanged as inflation risks stay in focus

The central bank's six-member Monetary Policy Committee, headed by Governor Sanjay Malhotra, is expected to leave the repurchase rate unchanged at 5.25%

RBI conducts two VRR auctions as liquidity surplus dips below ₹1 trillion

The central bank held two variable rate repo auctions after banking system liquidity surplus dropped below Rs 1 trillion, while the 10-year bond yield rose 3 basis points

RBI to conduct 3-day VRR auction on Friday, aims to infuse ₹1 trillion

The central bank will conduct a three-day variable rate repo auction to address evolving liquidity conditions after surplus liquidity moderated due to advance tax outflows

Cautious status quo: RBI sees higher inflation, slower growth in FY27

The decision to hold rates was unanimous. The MPC also retained the neutral stance on policy

Central bank preparing for external stress, a theme to prevail in FY27

It is the behaviour of a central bank preparing for a period of external stress, said Sujan Hajra, chief economist and executive director, Anand Rathi Group

RBI MPC meet: Status quo on rates likely as West Asia crisis deepens

After three days of deliberations, the six-member Monetary Policy Committee (MPC), headed by RBI Governor Sanjay Malhotra, will announce its decision on June 5