# Economists Predict RBI Rate Hike Amid Inflation Risks

> Economists say RBI may raise rates 25 bps to 5.50% as inflation risks grow.
- Title: Economists Predict RBI Rate Hike Amid Inflation Risks
- Summary: Economists say RBI may raise rates 25 bps to 5.50% as inflation risks grow. 80% of economists expect RBI to hike repo rate by 25 bps to 5.50% due to rising…
- Keywords: rbi, repo rate, inflation, gdp growth, monetary policy, economists, crude oil prices, food prices, monetary policy committee, business, money, news
- Source: Financialexpress — https://financialexpress.com/policy/economy/inflation-risk-may-tilt-rbi-towards-25-bps-rate-hike-economists/4353390
- Author: Kshipra Petkar
- Published: 2026-10-04T12:44:05+00:00
- Read time: 1 min
- Topics: rbi, repo rate, inflation, gdp growth, monetary policy, economists, crude oil prices, food prices, monetary policy committee, business, money, news
## Economists Expect RBI Rate Hike
80% of economists polled expect RBI to raise repo rate by 25 bps to 5.50% due to rising crude, food inflation, and strong GDP growth.
## MPC Meeting Approaches
The Reserve Bank of India’s Monetary Policy Committee will meet from October 5-7 with policy decision on October 7.
## Inflation Risks Rise
Retail inflation rose to 4.8% in August from 4.45% in July with elevated crude oil prices and El Niño pressures.
## GDP Growth Exceeds Projections
GDP expanded 7.8% in April-June quarter exceeding RBI’s earlier projection and giving central bank room to respond.
## Economists' Views on Rate Hike
80% of economists expect 25-bps rate hike while 60% bet on neutral stance and others point to calibrated tightening.
## Rate Hike Projections
Barclays, Nomura, and Goldman Sachs expect 25-bps hikes in October and December with Nomura seeing pre-emptive recalibration.
## RBI Rate Hike Concerns
Madan Sabnavis expects RBI to keep rates unchanged as inflation remains at 4.8% before festival season.
## Key takeaway

80% of economists expect RBI to hike repo rate by 25 bps to 5.50% due to rising inflation and strong GDP growth.