SBI Research on Thursday revised its December monetary policy forecast, expecting a 25-basis-point (bps) hike in repo rate instead of its earlier projection of 50 bps, citing improving external conditions and easing pressure on the rupee. The report said the terminal repo rate could settle at 6%, with a 50% probability of it being lower at 5.75%. The revision comes despite retail inflation rising to 6.09% in October. It expects inflation to peak at 6.3% in November before moderating. “We do not consider a further rate hike in February advisable, particularly given the proximity to the Union Budget,” the report said. “We had estimated a 100-bps hike, of which 25 bps already happened in October, 25 bps expected in December and the remaining will spill over into the next fiscal,” said Madhavankutty G, chief economist, Canara Bank.