Indian companies are rushing to borrow nearly $3 billion before the central bank’s next policy meeting, fearing interest rates may rise.

Firms are preparing at least 290 billion rupees in bond sales over the next few days, ahead of the RBI’s monetary policy decision on October 7. Big borrowers include Reliance Industries, Vedanta, Delhi International Airport, Adani Airport Holdings and JSW Energy, which together seek about 185 billion rupees.

Infrastructure trusts such as Cube Highways Trust and Interise Trust plan another 60 billion rupees in debt sales, according to market data.

‘Issuers who have a view that rupee interest rates will go even higher are locking in rates,’ said Akshay Naik, India head of debt capital markets at Citibank.

A Reuters poll of economists expects the RBI to raise its repo rate by 25 basis points to 5.50 per cent in October, the first hike since February 2023. Inflation hit 4.82 per cent in August, above the RBI’s 4 per cent target for the third month in a row. Why it matters: higher rates raise borrowing costs for companies and consumers alike.