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Rate Hike Cycle Extent Depends on Growth and Inflation: RBI Governor
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News18•21-10-2026, 17:45
Rate Hike Cycle Extent Depends on Growth and Inflation: RBI Governor
- •RBI Governor Sanjay Malhotra stated that the duration and extent of future rate hikes will depend on actual growth-inflation developments and outlook.
- •The Reserve Bank released the minutes of the Monetary Policy Committee meeting held from October 5-7.
- •The governor and five other MPC members unanimously voted to raise the repo rate by 25 basis points to 5.5 percent.
- •This marked the first time the rate was hiked after a gap of nearly four years.
- •The governor highlighted increasing signs of inflation generalization, noting that 37 percent of commodities in the CPI basket had inflation above 4 percent in August.
Key Questions Answered
The duration and extent of the rate hike cycle depend on actual growth-inflation developments and macroeconomic outlooks.
The Monetary Policy Committee voted to raise the repo rate by 25 basis points to 5.5 per cent.
Inflation has generalized, with 37 per cent of commodities in the CPI basket showing inflation above 4 per cent in August compared to 20 per cent in March.
