HSBC expects India’s Reserve Bank of India (RBI) to raise the policy repo rate by a total of 50 basis points in FY27, implying two 25-basis-point hikes during the fiscal year. The bank projects the repo rate would reach 5.75% as a result.
The outlook is linked to HSBC’s view of economic and price conditions. It points to strong growth alongside ongoing inflation pressures as the main factors that could keep monetary policy relatively restrictive. Across the reports provided, there is agreement on the size of the expected tightening—50 bps in total—and on the timing structure of two separate increases. The sources also converge on the projected end-point level for the repo rate, 5.75%, but they do not provide additional details such as specific RBI meeting dates or separate scenarios for different inflation outcomes.
