# Nomura, HSBC see RBI hiking repo rate to 5.75%

2026-09-28T05:11:31+00:00 | Business & Economy | Indian Opinion Desk

Corroboration: 2 independent outlets

Nomura expects the RBI to raise the repo rate by 50 basis points, taking it to 5.75% by December 2025, NDTV Profit reports. The brokerage says India's trend inflation has moderated and inflationary pressures are not broadening significantly across the economy. HSBC Global Investment Research expects the RBI to raise the repo rate by 25 basis points twice in FY27, reaching 5.75%, the Economic Times reports. HSBC cites Q2 FY26 GDP growth that beat the RBI's 7% forecast and inflation averaging over 5% over the next three quarters. It also expects the RBI to absorb Rs 5-6 lakh crore of excess liquidity through OMO sales. The report projects FY27 GDP growth at 7.2% and warns of moderation from a high base, weak sowing, and deficient rainfall. The RBI's next monetary policy committee meeting will decide the actual pace of rate increases.

## Indian Opinion Analysis

Both Nomura and HSBC reports cited by the two sources concur on the direction of interest rates but differ in timing and pace. NDTV Profit’s Nomura forecast expects a more aggressive 50-basis-point hike by December 2025, while the Economic Times’ HSBC report sees it split into two 25-basis-point moves in FY27. Neither source carries a pro- or anti-government slant. The difference reflects competing market expectations about how fast the RBI will react to strong GDP numbers and above-target inflation. The next policy review in April will test whether the RBI shares Nomura’s urgency or HSBC’s gradualism.

## Coverage

- ndtvprofit.com (neutral report) <https://www.ndtvprofit.com/economy/rbi-likely-to-hike-repo-rates-by-50-bps-taking-terminal-rate-to-5-75-by-december-nomura-12107179>
  Leads with Nomura's faster timeline, omitting any growth caution from the HSBC report
- economictimes.indiatimes.com (neutral report) <https://economictimes.indiatimes.com/news/economy/policy/hsbc-expects-rbi-to-raise-repo-rate-by-50-bps-in-fy27-amid-strong-growth-inflation-pressures/articleshow/134536430.cms>
  Leads with HSBC's gradual pace and adds fiscal deficit and growth moderation details

Tags: Monetary Policy Committee, Nomura, repo rate, Reserve Bank of India
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