The Reserve Bank of India's (RBI) repo rate hike of 40 basis points on May 4 was the first increase in the policy rate in nearly four years. The question now being asked is when will the RBI hit its 'terminal' rate – or stop hiking the repo rate. According to economists, the famous Taylor Rule – a formula that says what the policy rate should be for a given inflation target and the existing output gap – puts the terminal repo rate at 6.5 percent. Meeting this number would require another 210 basis points worth of repo rate hikes.