New Delhi, Sept. 4 -- The Reserve Bank of India (RBI) could raise the repo rate to 5.75-6 per cent in the second half of FY27 to contain excess banking liquidity and curb rising inflation amid strong economic growth, with Union Bank of India expecting the rate hike cycle to begin in December.

UBI expects two to three increases of 25 basis points each, taking the repo rate from the current 5.25 per cent to 5.75-6 per cent. It said the outlook follows a combination of strong economic growth, rising inflation and tighter global financial conditions.

"Rate hikes are back on the table for H2 FY27," the report said, adding that December appears to be the more likely starting point in its base-case scenario.

The report comes as foreign exchan...