RBI likely to hold as BofA flags 50bp December 2026
The RBI is likely to keep interest rates unchanged for now, but things might change by December 2026 if domestic inflation picks up: think higher food prices due to weird weather.
According to BofA Securities, a total rate hike of 50 basis points could be in the cards as inflation shifts from global issues to homegrown ones like unpredictable monsoons.
BofA lifts FY27 growth to 6.9%
BofA just bumped up its GDP growth forecast for fiscal 2027 to 6.9%, thanks to strong spending and investments.
Still, they warn that weak monsoons and El Nino could push food prices higher and hit rural areas hard.
On the bright side, India's current account deficit should shrink, helped by cheaper oil and improving terms of trade.
NBFCs (think lenders for vehicles or small businesses) have growth opportunities but may face tougher times if borrowing costs rise with inflation.