As price pressure spreads, it is likely that the Bank of India will continue to raise interest rates in the next many meetings to join the global cycle of tightening monetary policy. Economists at more and more institutions such as Goldman Sachs, Standard Chartered, Deutsche Bank, and Morgan Stanley predict that the Reserve Bank of India will continue to raise interest rates by 25 basis points at the next interest rate meeting on December 4. Some institutions expect to raise interest rates by another 50 basis points in the first half of 2027, and the policy interest rate will rise from the current 5.5% to 6.25%, a two-year high. At that time, India's benchmark interest rate will be among the highest in Asia. Less than a year ago, the market generally expected the Bank of India to cut interest rates, and the inflation outlook worsened faster than expected. The report said that the Bank of India raised interest rates for the first time in nearly four years on Wednesday and changed its policy stance to “prudent gradual austerity,” sending early signs that inflation has spread across the board, and market expectations for continued interest rate hikes have heated up.

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