SBI Research forecasts steady repo rate at 5.25% through FY27
SBI Research expects the repo rate to stay at 5.25% through FY27, despite July inflation rising to 4.45%. Inflation may temporarily exceed 6% later this year before easing, indicating stable borrowing costs ahead.
after close1 source ↓written by the desknot a recommendation
- and potential spikes
- 4.7% in August
- before easing later
- 6% in October and November
SBI Research projects the repo rate to remain at 5.25% until FY27, despite July inflation hitting 4.45%, a 19-month high. The report anticipates a temporary rise in inflation to 4.7% in August and potential spikes above 6% in October and November before easing later in the fiscal year.
This outlook suggests stability in borrowing costs, which may influence market sentiment and investment strategies. Traders should monitor inflation trends closely as they could impact monetary policy decisions.
Not investment advice. For informational purposes only.