India's repo rate may reach 6% in FY27; government bond yields could face more pressure

The Economic Times reports that Union Bank of India expects the RBI to raise its repo rate by 25 basis points in October 2026, followed by one or two more hikes during the rest of FY27. That would take the rate to 5.75–6%. The bank says 10-year government bond yields could face further upward pressure if rate hikes coincide with persistently high crude prices, rising global yields and subdued auction demand.