Will RBI announce steep rate hikes? Nomura sees up to 50 bps increase by Dec, dismisses 125 bps hike fears
Economic Times 1 hr ago·28 Sept 2026, 4:37 am
Nomura's latest outlook suggests the RBI is likely to raise the repo rate modestly, perhaps by 25‑50 basis points by the end of the year, dismissing rumours of a 125‑basis‑point jump. The bank cites rising food and energy prices but notes that core inflation remains within the central bank's target range.
For investors, a limited hike would keep borrowing costs higher without triggering a market shock, offering some support to the rupee and limiting equity volatility. It also signals a cautious monetary stance, which can affect sectors sensitive to financing costs such as real estate and auto.
Market watchers should keep an eye on upcoming CPI data, RBI policy statements and global interest‑rate trends. Any surprise in core inflation or a shift in the RBI's tone could alter the pace of future tightening.
Key takeaways
- Category: Economy.
- Flagged as a high-impact, market-moving story.
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