RBI likely to raise repo rate by 25 basis points in October and December

Analysts project the Reserve Bank of India will raise its key repo rate by 25 basis points each in October and December this year. The expected hikes come as headline inflation is anticipated to climb further, prompting monetary tightening.

Global factors including crude oil prices and decisions by the US Federal Reserve are also influencing the outlook. Economists believe the rate increases are necessary to manage inflation and preserve the credibility of real interest rates amid persistent price pressures.