RBI may raise repo rate by 75-100 bps as inflation concerns persist: SBI Capital

SBI Capital Markets has signalled that the Reserve Bank of India may raise the repo rate by 75 to 100 basis points during the current monetary policy cycle as inflationary pressures remain elevated.

While the financial services firm expects gradual rate increases to remain the dominant scenario, it cautioned that a larger rate hike in December 2026 cannot be ruled out. The assessment reflects concerns over sticky inflation that may prompt more aggressive RBI action.

The central bank has been balancing growth concerns against price stability. Any rate increase would make borrowing costlier for businesses and consumers, potentially affecting credit demand and economic expansion.