More RBI rate hikes coming, SBI wants ‘jumbo’ 50 bps increase by December

The Reserve Bank of India's Monetary Policy Committee is anticipated to continue raising interest rates in the coming months following their initial hike on Wednesday. Soumya Kanti Ghosh, a group chief economic adviser at the State Bank of India, suggests a 50-basis-point increase during the December 2-4 meeting or earlier. This surge is attributed to the steep rise in inflation and potential global uncertainties.

Ghosh believes a 6% repo rate by December could be ideal. Inflation is projected to peak at 6.8% in November, with the Monetary Policy Committee signaling a more restrictive stance, indicating no rate cuts in the near term.