SBI Appeals to RBI Increase Repo Rate: Inflation has given a big blow to the countrymen. Along with wholesale inflation, retail inflation has also increased. Its effect is that everything from potatoes and onions to oil and electricity has become expensive. The country's retail inflation rate increased to 4.82 percent. Retail inflation rate in July was 4.45 percent. This is the eighth consecutive month when retail inflation has increased. After the impact of inflation, now banks can give you the tension of EMI. The country's largest government bank, State Bank of India i.e. SBI has appealed to the Reserve Bank of India i.e. RBI to increase the repo rate. He has also appealed to increase the repo rate not once but twice.
SBI in its new research report has advised RBI to make two increases of 25 basis points each in October and December. However, RBI has not yet taken any decision to increase the repo rate. At present the repo rate is stable at 5.25 percent and in the August meeting, RBI had not made any change in it for the fourth consecutive time.
According to SBI Research, rising crude oil prices, external shocks and risks related to inflation have led to increase in interest rates.
Crude oil prices in the international market have recently crossed $ 100 per barrel. A model by SBI Research has predicted crude to reach $ 123 per barrel in the next 15 days. However, the report has described it as a stress scenario. Not a general estimate. In the second model, the average price of crude during the next 15 days has been estimated at $ 105 per barrel.
RBI's next decision in October is important
Now everyone's eyes will be on the next MPC meeting of RBI. This meeting will be held between 5th to 7th October. In this meeting, RBI will take its next decision on interest rates considering inflation, crude oil prices and the state of the economy. The decision may also impact your pocket, home loan EMI and FD returns.
The scope of inflation also increased
SBI Research's analysis has also indicated that inflationary pressure may spread to more items. The number of commodities covering 90 per cent weighted contribution to CPI increased from 22 in January 2026 to 53 in July. According to the report, input costs in sectors like crude petroleum and natural gas, beverages, pharmaceuticals and electronics are increasing faster than output prices. In such a situation, pressure may increase on companies to pass on some part of the increased cost to customers.
Hope of relief for FD holders
At the same time, customers making FD can get a benefit from the increase in repo rate. If banks increase interest rates, customers making new FDs may get a chance to lock money at a higher interest rate than before. This means that while loan borrowers may face pressure from increased interest, those making new FDs may expect to get higher returns.
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