RBI May Deliver Two Rate Hikes by End of 2026: Analysts

Analysts expect the Reserve Bank of India to shift towards a more restrictive monetary stance in the second half of 2026, potentially delivering two rate hikes by year-end.

The outlook is driven by a combination of elevated inflation risks, strong liquidity conditions, and the prospect of global monetary tightening. These factors are creating pressure on the RBI to reassess its current policy stance and move towards interest rate increases to manage inflation.