New Delhi, Oct. 8 -- The Reserve Bank of India (RBI) is expected to raise the repo rate in its next two policy meetings and absorb an additional Rs 2 lakh crore of liquidity as it pursues a calibrated tightening stance, according to an ICICI Bank report.

The Monetary Policy Committee (MPC) on Wednesday unanimously raised the repo rate by 25 basis points to 5.5 per cent and shifted its stance from 'neutral' to 'calibrated' tightening.

The policy statement indicated that the revised stance signals the likely direction of future rate decisions, whether a hike or pause, rather than the extent of further increases. "The term 'calibrated' suggests a more data dependent approach," ICICI Bank said, ANI reported.

The lender expects the liquidit...