businessline poll: MPC seen raising rates by 25 bps this week; majority expect 50-75 bps tightening by FY27
BusinessLine 1 hr ago·4 Oct 2026, 4:31 pm
A recent BusinessLine poll of bank economists shows the Reserve Bank’s Monetary Policy Committee is likely to lift the policy repo rate by 25 basis points in its upcoming meeting. The same respondents expect the committee to continue tightening, with a cumulative increase of about 50‑75 basis points by the end of fiscal year 2027.
Higher rates raise borrowing costs for households and companies, which can slow credit growth, weigh on profit margins and dampen consumer spending. For equity markets, tighter policy often translates into lower valuations, especially for sectors that are rate‑sensitive such as real estate, financials and high‑growth tech.
Investors should keep an eye on the MPC’s official decision, upcoming inflation and growth data, and any forward guidance that signals a shift from a neutral stance. Changes in the pace of tightening could affect market sentiment and the performance of rate‑sensitive stocks in the weeks ahead.
Excerpt from BusinessLine
Bankers expect the Monetary Policy Committee (MPC) to raise the policy repo rate by 25 basis points (bps) on Wednesday, October 7, 2026, with a majority also expecting the MPC to deliver a cumulative 50-75 bps rate hike by the end of FY27, according to a poll of bank economists conducted by businessline . Eleven of…Read the original at BusinessLine
Key takeaways
- Category: Economy.
- AI reads the tone as negative (potentially bearish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
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