{
  "id": 10897440,
  "title": "RBI rate hikes ahead? BofA sees 100 bps repo rate increase through H1 2027",
  "url": "https://urgent.news/2026/09/30/rbi-rate-hikes-ahead-bofa-sees-100-bps-repo-rate-increase-through-h1",
  "topic": "culture",
  "section": "Culture",
  "published": "2026-09-30T08:29:14.000Z",
  "source": {
    "name": "Times of India",
    "slug": "times-of-india",
    "url": "https://timesofindia.indiatimes.com/business/india-business/rbi-rate-hikes-ahead-bofa-sees-100-bps-repo-rate-increase-through-h1-2027/articleshow/134584123.cms"
  },
  "original_language": "en",
  "account": "Bank of America (BofA) predicts the Reserve Bank of India (RBI) could increase interest rates by 100 basis points by the first half of 2027, according to their latest outlook. This is an increase from their previous estimate of a 50-basis-point hike, marking a significant shift in their forecast.\n\nBofA anticipates the RBI to raise the repo rate by 25 basis points during their meeting on October 7, followed by additional hikes totaling 75 basis points, bringing the projected terminal rate to 6.25%. This revised forecast is nearly double BofA's earlier estimate.\n\nThe brokerage attributes this larger forecast to two primary factors: a resilient domestic economy and broader inflation risks. Despite oil prices hovering around $100-$110 per barrel, rising fuel price increases and food supply pressures are contributing to inflation concerns. Economists also point to strong economic growth and rising non-food credit growth as reasons for the revised outlook.\n\nBofA notes that food inflation is becoming more widespread, while wholesale inflation is spreading beyond traditional sectors. If real GDP growth remains around 7% and headline inflation stays close to 5.5%, the central bank may raise rates by more than 100 basis points, potentially pushing front-end rates above the 6.5% threshold. However, a slowdown in growth could lead to fewer hikes or no hike from the RBI.",
  "summary": "Bank of America Securities anticipates that the Reserve Bank of India will implement significant interest rate hikes by mid-2027. They have adjusted their forecast for the initial hike to October instead of December, predicting a cumulative increase of 100 basis points, resulting in a terminal rate of 6.25 percent. This expectation is bolstered by economic growth and inflation concerns, but any…",
  "key_points": [
    "Bank of America predicts RBI could raise interest rates by 100 basis points by H1 2027",
    "Repo rate to increase by 25 basis points in October meeting, then 75 more points",
    "Forecast based on resilient economy, inflation risks, strong growth"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}