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RBI Hikes Repo Rate by 25 bps to 5.5 Percent in October Monetary Policy
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News18•07-10-2026, 12:30
RBI Hikes Repo Rate by 25 bps to 5.5 Percent in October Monetary Policy
- •The Reserve Bank of India hiked the repo rate by 25 basis points to 5.5 percent, marking the first rate hike since February 2023.
- •The Monetary Policy Committee unanimously decided to raise the interest rate and changed the policy stance to calibrated tightening.
- •The GDP growth forecast for FY27 was raised by 40 basis points to 7.1 percent, reflecting the resilience of the Indian economy.
- •Inflation projections for FY27 were marginally raised to 5.2 percent amid global economic uncertainties and supply chain disruptions.
- •The next meeting of the MPC is scheduled to take place from December 2 to 4, 2026.
Key Questions Answered
The Reserve Bank of India hiked the repo rate by 25 basis points to 5.5 percent during the October bi-monthly monetary policy meeting. This marks the first rate hike implemented by the central bank since February 2023.
The RBI raised its GDP growth forecast for FY27 by 40 basis points to 7.1 percent, citing the continued resilience of the Indian economy. At the same time, inflation projections for FY27 were marginally raised to 5.2 percent.
The Monetary Policy Committee voted unanimously to shift its monetary policy stance to 'calibrated tightening'. Governor Sanjay Malhotra noted that rate cuts are currently off the table, meaning future policy actions will be restricted to either further rate hikes or a pause.
