New Delhi, Oct. 8 -- The Reserve Bank of India (RBI) is expected to raise the repo rate in two consecutive policy meetings, while absorbing an additional Rs 2 lakh crore of liquidity, as per a report by ICICI Bank.

The Monetary Policy Committee (MPC) unanimously raised the repo rate by 25 basis points to 5.5 per cent and shifted its policy stance from 'neutral' to 'calibrated tightening' on Wednesday.

The policy statement clarified that the revised stance signals the likely direction of future rate decisions, whether a hike or a pause, rather than the extent of further increases.

"The term 'calibrated' suggests a more data dependent approach," the lender noted in its report.

As per the report, the liquidity surplus is expected to narr...