New Delhi, Oct. 9 -- The Reserve Bank of India (RBI) could raise rates by 50-75 basis points (bps) cumulatively in the remainder of fiscal year 2027 (FY27), helping contain inflation expectations without materially derailing India's consumption story, said Tanvee Gupta Jain, chief economist at UBS Securities India.

As RBI joins global central banks in a tightening cycle, Jain sees limited risk of over-tightening but cautions that retail inflation will remain significantly above the RBI's 4% medium-term target for the next three quarters, starting Q3FY27.

The stance change was largely in line with our expectations. We see the move as a response to resilient growth, broadening price pressures, accommodative monetary conditions, elevated c...