New Delhi, May 11 -- The Reserve Bank of India (RBI) is expected to raise interest rates twice in the current financial year FY27 due to inflationary pressures arising from rising energy prices and the possible impact of El Nino weather conditions, according to a report by HSBC.

The report stated that the combination of energy shocks and El Nino-related disruptions could push inflation higher and slow down economic growth during FY27.

According to the report, HSBC expects headline inflation to average 5.6 per cent in FY27 after factoring in the impact of higher energy prices and temperature-related food inflation.

"With the energy and El Nino shocks coinciding, the FY27 outlook needs attention. Our model suggests the El Nino/temperatur...