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The Economic Times
The Economic Times
National

RBI rate hike: Interest burden for Indians may go up later this year amid inflation risks

RBI Inflation India BofA Securities Reserve Bank of India Deficit

New Delhi: The Reserve Bank of India (RBI) is likely to keep policy rates unchanged in the near term, but BofA Securities expects a cumulative 50 basis points (bps) rate hike from December 2026 as inflation risks become increasingly driven by domestic factors.

According to the report, macroeconomic risks have shifted from geopolitical tensions to local weather conditions, which are expected to play a key role in shaping future monetary policy.

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