New Delhi, Oct. 10 -- The Reserve Bank of India (RBI) may raise the repo rate by 75-100 basis points during the current monetary tightening cycle, as inflationary pressures are expected to persist before easing in the next financial year, according to a report by SBI Capital Markets.

The brokerage said gradual rate increases remain the most likely scenario, although a larger hike in December 2026 cannot be ruled out. The RBI's decision will depend on inflation readings for September and October.

The Monetary Policy Committee's 25-basis-point repo rate hike and its shift in monetary policy stance from "Neutral" to "Calibrated Tightening" indicate a stronger emphasis on controlling inflation, the report said.

SBI Capital Markets expects ...