New Delhi, Oct. 10 -- The Reserve Bank of India is expected to deliver an additional 50 basis points (bps) of interest rate increases across its next two policy meetings, pushing the terminal repo rate to 6.0 per cent, according to a research report by Kotak Institutional Equities.

The projection follows the central bank's decision to lift the repo rate by 25 basis points to 5.5 per cent on Wednesday, alongside a shift in monetary stance from neutral to calibrated tightening. The report noted that the move reflects rising inflationary pressures and points to further rate hikes ahead, even as the tightening cycle remains relatively shallow.

"The move was driven by a firmer macro outlook and higher inflation forecast. It strengthens the c...