A Union Bank of India report says the Reserve Bank of India (RBI) could raise rates before its next scheduled December policy meeting, as inflation and rupee pressure mount. It suggests a 50 basis-point hike at the December meeting is possible, after the 25-basis-point increase announced earlier this month, and does not rule out an inter-meeting hike. Wholesale inflation rose to 11.39% in September from 9.92% in August, above Union Bank's 10.60% forecast and the market's 10.18% estimate, driven mainly by manufactured products, while fuel inflation reached 25.87% as crude prices surged amid the US-Iran conflict. The report expects wholesale inflation to average around 10.5% in FY27 if crude averages USD 90-95 per barrel, and warns of further risks if crude stays above USD 100 or weather hits the rabi crop.
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Original headline: RBI may announce unscheduled rate hike amid inflation , rupee pressures : Union Bank report
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