New Delhi, Oct. 27 -- The Reserve Bank of India (RBI) may raise the repo rate to 6.25% by the first half of 2027, implying cumulative monetary tightening of 100 basis points in the current cycle, as persistent inflationary pressures and resilient economic growth could warrant a tighter monetary policy, according to a report by Deutsche Bank.

The bank expects the RBI to raise the policy rate by 25 basis points in December 2026, followed by another 50 basis points of tightening during the first half of 2027. The forecast is more hawkish than market expectations and reflects the possibility of economic growth remaining above 7% even as inflation stays elevated.

The RBI's monetary policy decisions will be closely watched as policymakers bal...