New Delhi: The Reserve Bank of India (RBI) is likely to raise the repo rate to 6.25 per cent by the first half of 2027, implying a cumulative monetary tightening of 100 basis points in the current cycle as persistent inflationary pressures and resilient economic growth warrant a tighter policy setting, according to a report by Deutsche Bank.
Deutsche Bank said its report that it expects a 25-basis-point rate hike in December 2026, followed by another 50 basis points of tightening in the first half of 2027. The forecast is more hawkish than market consensus, reflecting expectations of sustained growth above 7 per cent alongside inflation remaining elevated.
