Policy▼ Bearish for Indian equities
RBI repo rate may climb to 6% in FY27; G-Sec yields face upward pressure: Report
The brief
- RBI is expected to raise the repo rate by 25 basis points in October
- One or two further FY27 hikes could take the benchmark rate to 5.75-6%, pressuring G-Sec yields
- Higher yields could weigh on bond portfolios and borrowing costs for Indian banks
- After Sept, bond yields to peak in Oct too? Experts decode future of Indian bond market; RBI's next move holds key
- Jefferies puts 25% of sovereign bond portfolio in Indian 15-year debt at 7.38% yield
- Rising gilt yields attract retail investors hunting for tax-efficient assets
- Market crash wipes out Rs 26 lakh cr in 8 weeks! Why soaring bond yields may hurt Sensex, Nifty more than elevated oil prices
- 10-year bond yield breaches 7.20%; hits 2.5-year high
RBI rate-hike outlook
Economists and research firms increasingly expect RBI rate hikes, with forecasts ranging from 50 bps in FY27 to 100 bps through H1 2027; several anticipate hikes in October and December. They cite broadening inflation, oil prices, rupee weakness and global risks, while growth is seen holding up.
Sunday, 4 October
- RBI repo rate may climb to 6% in FY27; G-Sec yields face upward pressure: Report