Societe Generale Predicts RBI Will Raise Repo Rate to 6% by Early 2027

Societe Generale’s Kunal Kundu anticipates that the Reserve Bank of India (RBI) will implement three successive 25 basis point rate hikes, increasing the repo rate from the current 5.25% to 6.00% by early 2027, according to FX Street.

This expected tightening cycle suggests the RBI’s ongoing commitment to managing inflation and supporting economic stability amid evolving global and domestic conditions. The Indian Rupee’s performance will likely be influenced by these monetary policy adjustments.

For Japanese investors and market participants, monitoring the RBI’s rate trajectory is crucial, given the growing financial linkages between Japan and India, especially in FX and equity markets.