The Reserve Bank of India is likely to raise its policy rate by 25 basis points each in October and December, taking the repo rate to 5.75%, as food and energy prices push inflation higher, PTI reported on Tuesday, citing Japanese brokerage Nomura.
The brokerage, however, expects the rate-hike cycle to lose momentum from February 2027 as higher prices begin to weigh on demand and the inflation outlook softens.
