📷 Image: Wikimedia Commons / Vyacheslav Argenberg
Business
RBI May Raise Repo Rate to 6.25% to Tackle Inflation, Says SBI MF
✍️ Asianet Newsable
🗓 18 Oct 2026, 09:32 PM
👁 17
SBI Mutual Fund has indicated that the Reserve Bank of India might need to lift its repo rate to 6.25% in order to curb rising inflation.
The Reserve Bank of India (RBI) has been using the repo rate as a primary tool to manage liquidity and inflation. According to a statement from SBI Mutual Fund, the RBI may consider raising the rate to 6.25% to bring down inflationary pressures.
SBI MF's comment comes amid persistent inflation readings, prompting market participants to anticipate a potential policy shift.
A hike would increase borrowing costs for banks and could slow down credit growth, affecting sectors such as housing and auto.
The RBI has previously used rate adjustments to balance growth and price stability, and market watchers will monitor the upcoming policy meeting for confirmation.
SBI MF's comment comes amid persistent inflation readings, prompting market participants to anticipate a potential policy shift.
A hike would increase borrowing costs for banks and could slow down credit growth, affecting sectors such as housing and auto.
The RBI has previously used rate adjustments to balance growth and price stability, and market watchers will monitor the upcoming policy meeting for confirmation.