Repo Rate: RBI should hike it by 25 bps in both Oct and Dec, says SBI Research; know why

The RBI Monetary Policy Committee should raise the Repo Rate by 25 basis points in October and December to tackle external headwinds, the chief of which is crude prices that have kep surging even beyond the $100 a barrel mark, SBI Research has said in a note. The next rate-setting meeting for RBI Monetary Policy Committee is scheduled on October 5-7, 2026.   

Kolkata: Its time for the Reserve Bank to use the Repo Rate to counter external headwinds, SBI Research has said. In a recent note, the economic policy research arm of the State bank of India has recommended that the RBI Monetary Policy Committee should raise the Repo Rate twice in October and December. The extent of raise could be 25 basis points on each occasion, the agency said. “Now we strongly advocate a 25-bps rate hike in the upcoming October policy (followed by another in December in quick succession), factoring the myriad evolving undershoots as detailed in this report. Out rate........

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