SBI Capital Markets expects the Reserve Bank of India (RBI) to raise the repo rate by 75-100 basis points during the current tightening cycle, with a larger hike in December 2026 possible depending on inflation data. The report projects consumer inflation to peak in Q3 FY27 before easing, while warning that high crude oil prices, geopolitical tensions and rising borrowing costs could weigh on consumption. Higher rates may support bank margins in FY27, with bonds potentially regaining investor interest in FY28.