New Delhi, Oct. 6 -- The Reserve Bank of India is seen beginning a rate-hike cycle that could take the repo rate to 6 per cent by the end of FY27, as rising inflation, elevated global yields and resilient domestic growth strengthen the case for tighter monetary policy, according to research reports by Union Bank of India and ICICI Bank.

The reports, released ahead of the second day of the RBI Monetary Policy Committee's October 5-7 meeting, broadly converge on a cumulative 75-basis-point tightening cycle, while differing on the policy stance and the risks that could alter the pace of rate increases.

Union Bank expects the MPC to raise the repo rate by a quarter percentage point to 5.50 per cent in the current review and shift towards a ...