- SBI Research proposes a 50 bps increase and a possible move before the next MPC meeting
- It also proposes a wider liquidity corridor and tighter export realisation timelines
- Global volatility, bond yields and AI-linked borrowing are cited as risks
- The RBI raised the repo rate to 5.5 per cent on 7 October 2026
- The next MPC meeting runs from 2 to 4 December 2026
SBI Research wants the Reserve Bank of India to weigh a 50 bps increase and move earlier than planned. It says the central bank may not need to wait for its next scheduled policy meeting.
What the research arm is asking for
Besides the larger increase, SBI Research wants a wider liquidity corridor. It also seeks tighter timelines for export realisation, the period within which exporters must convert foreign-currency earnings.
Why it wants faster action
The call comes amid global financial volatility and pressure in currency markets. Uncertainty is rising over global liquidity, bond yields are climbing, and commodity supplies face risks. Borrowing linked to artificial intelligence is also growing fast.
SBI Research says emerging markets are especially exposed. It warns that a cautious response could let financial pressures build further.
The research arm believes growth could stay strong and exceed 7.5 per cent. It suggests the RBI consider a bigger increase in December. Market expectations point to a shallow cycle of hikes, but it says the central bank should decide the size, extent and duration of tightening based on how conditions evolve. An earlier move may be warranted if financial conditions demand it.
Where the RBI stands
On 7 October 2026, the Monetary Policy Committee voted unanimously to raise the repo rate by 25 bps, to 5.5 per cent from 5.25 per cent. It was the first increase since 2023. The move placed India alongside several major central banks tightening policy to contain fast-rising inflation.
આરબીઆઈએ સ્ટેન્ડિંગ ડિપોઝિટ ફેસિલિટી રેટ પણ 5.25 ટકા પર સેટ કર્યો છે. માર્જિનલ સ્ટેન્ડિંગ ફેસિલિટી રેટ અને બેંક રેટ 5.75 ટકા થઈ ગયા. તે નિર્ણય પહેલાં, આરબીઆઈ ફુગાવાના દબાણને કારણે બેંકિંગ સિસ્ટમમાંથી ફાજલ રોકડ ખેંચી રહી હતી.
What comes next
Minutes of the October MPC meeting will be published on 21 October 2026. The next meeting runs from 2 to 4 December 2026.
Liquidity will remain in focus. The RBI must keep the weighted average call rate in line with the repo rate while excess liquidity stays high.
