The Reserve Bank of India (RBI) raised the repo rate by 40 basis points on May 4. Economists see plenty more in the coming months. Before the May 4 rate hike, the repo rate was at 4 percent - exactly half of what it was before the easing cycle began in January 2015. With interest rates having trended lower globally, the repo rate is unlikely to hit 8 percent again. But fears are it might be increased rather quickly given the elevated inflation.