RBI repo rate may climb to 6% in FY27; G-Sec yields face upward pressure: Report

The Reserve Bank of India's repo rate is expected to rise to 6% by the end of the next fiscal year, FY27. This prediction is based on a report from Union Bank of India, which suggests that the RBI may increase the repo rate by another 25 basis points in October, followed by one or two more hikes. A higher repo rate can lead to increased borrowing costs for consumers and businesses, which may slow down economic growth.

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The RBI is expected to raise the repo rate to control inflation. This could lead to higher borrowing costs and affect economic growth.

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