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RBI Panel Starts Monetary Policy Deliberations With 0.25 bps Rate Hike Likely
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News18•05-10-2026, 15:30
RBI Panel Starts Monetary Policy Deliberations With 0.25 bps Rate Hike Likely
- •The Reserve Bank of India's Monetary Policy Committee began its three-day meeting on Monday, with a likely 25 basis points rate hike.
- •An interest rate hike would mark a stance reversal following rate cuts in 2025 and a prolonged pause, according to a PTI poll.
- •Retail inflation accelerated to an eight-month high of 4.82 per cent in August, prompting concerns over domestic inflation risks from West Asia conflicts.
- •The monetary policy statement and decision will be announced on October 7 at 10 am.
- •Economists and experts remain divided, with some expecting an immediate hike while others predict a status quo until December.
Key Questions Answered
The RBI's policy repo rate currently stands at 5.25 per cent. The central bank previously kept the rate unchanged through 2023-24 before beginning a rate-cut cycle in 2025.
The Reserve Bank announced that its monetary policy statement will be released on October 7 at 10 am. The decision follows a three-day meeting of the Monetary Policy Committee that began on Monday.
India's retail inflation accelerated to an eight-month high of 4.82 per cent in August, up from 4.45 per cent in July. The government has mandated the RBI to ensure CPI inflation stays at 4 per cent with a 2 per cent margin on either side.
