Policy Normalisation Accelerates as RBI Eyes 6% Repo Rate by 2027

NEW DELHI – According to a policy‑focused research brief, the RBI may accelerate its normalisation trajectory, targeting a six‑percent repo rate by April 2027. The analysis notes that fixed‑income investors are confronting a complex backdrop of surging inflation and abundant liquidity, pushing the central bank to rethink its overnight rate anchor. It outlines a coordinated approach: re‑setting the policy rate anchor, absorbing excess medium‑term liquidity, and considering a quicker repo‑rate normalisation cadence. The study also outlines limited scope for further liquidity easing amid current market anomalies.