HSBC now expects RBI rate to reach 6% by December

Business Oct 15, 2026

HSBC now expects India's central bank (RBI) to raise its key interest rate to 6% by the end of December, a bigger jump than it first thought.

This change comes as the country deals with higher oil prices, a weaker rupee, and inflation rising to a two-year high.

RBI raises 25bps, tightens currency rules

To keep things steady, the RBI has already bumped rates up by 25 basis points and put in some rules to stop risky moves in the currency market.

HSBC thinks the RBI will use a mix of these tools, rate changes, and regulations to keep inflation between 2% and 6%.

Another big hike isn't likely unless things get worse, since India's current account deficit is under control for now.