New Delhi, Oct. 10 -- The Reserve Bank of India (RBI) could raise the repo rate by 75-100 basis points in the current tightening cycle, with inflation expected to remain elevated before easing from the next financial year, according to an SBI Capital Markets report.

SBI Caps said gradual rate increases remain the base case, although a larger hike in December 2026 cannot be ruled out depending on inflation readings for September and October.

The report said the Monetary Policy Committee's 25-basis-point repo rate hike and its shift in stance from "Neutral" to "Calibrated Tightening" signal a stronger focus on containing inflation. It expects the policy cycle to turn around in the first quarter of FY28 as the growth-inflation balance evol...