Mumbai, Sept. 12 -- The Reserve Bank of India is likely to raise its policy rate by 25 basis points in October and another 25 basis points in December as rising crude prices and broader inflation pressures threaten to push inflation higher, SBI Research said in its latest Ecowrap report.

The report said the expected rate hikes would be driven by evolving economic risks and would be independent of any possible action by the US Federal Reserve, similar to the approach taken by the RBI in 2022. "We strongly advocate a 25-bps rate hike in the upcoming October policy (followed by another in December in quick succession)," the report said.

The report further added that crude oil prices have recently crossed USD 100 a barrel amid heightened ge...