Policy▼ Bearish for Indian equities
RBI may end rate-cut cycle with first hike since February 2023
The brief
- Bankers expect the RBI to raise the repo rate by 25 basis points
- The expected hike would end the rate-cutting phase that began in February 2023
- A rate reversal could affect Indian banks’ lending growth and funding costs
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RBI rate outlook and inflation risks
Economists and research firms increasingly expect the RBI to raise the repo rate by 25 basis points in October, citing inflation, elevated crude prices, rupee weakness and global risks. The RBI has held the rate at 5.25% for four consecutive meetings after cumulative cuts of 125 basis points.
Monday, 5 October
- RBI may end rate-cut cycle with first hike since February 2023