HSBC expects RBI to raise repo rate by 50 bps in FY27 amid strong growth, inflation pressures

Economic Times - Sep 28, 2026

India's GDP growth in the second quarter of FY26 surpassed the Reserve Bank of India's forecast of 7 percent. The growth prompted forecasts of gradual rate hikes, with expectations of a 25 basis points increase twice in FY27. Additionally, inflation is projected to hover above 5 percent due to various economic pressures. Rising oil prices are expected to widen the current account deficit to 1.3 percent of GDP in FY27.

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