The Reserve Bank of India has signaled a 75‑basis‑point increase in its policy rate from October, a third raise in a planned series that is expected to curb inflation without stalling growth.
ANZ Research’s Group Chief Economist Richard Yetsenga warned that a total of three hikes should be enough to start capping inflation, yet he added that the economy’s investment‑driven engine keeps it largely insulated from rate sensitivity.
Meanwhile, global markets are watching the U.S. Treasury yield curve, which has climbed amid a massive refinancing burden and AI‑sector capital demands, even as Brent crude prices slipped $3–4 a barrel.
In India, the rupee is likely to see a 1.5% depreciation against the dollar over the next six to twelve months, as higher domestic rates ease pressure on the currency. Bond traders have already priced in a 20‑basis‑point jump in yields, and corporate earnings forecasts are being adjusted to reflect a tighter funding environment.