Stories
RBI Raises Repo Rate by 25 Bps to 5.50 Percent in First Hike Since February 2023
N
News18•07-10-2026, 10:10
RBI Raises Repo Rate by 25 Bps to 5.50 Percent in First Hike Since February 2023
- •The Reserve Bank of India raised the repo rate by 25 basis points to 5.50 per cent following the Monetary Policy Committee meeting.
- •This marks the first interest rate hike by the central bank since February 2023, following a prolonged pause and previous rate cuts.
- •The decision was driven by renewed inflationary pressures, rising crude oil prices, and ongoing pressure on the Indian rupee.
- •Borrowers with floating-rate loans could face higher EMIs or extended repayment tenures as banks pass on increased borrowing costs.
- •The move aligns with a shifting global monetary environment where major central banks like the US Federal Reserve are also tightening policy.
Key Questions Answered
The Reserve Bank of India raised the repo rate by 25 basis points to 5.50 per cent following the Monetary Policy Committee's October meeting.
The RBI raised rates due to renewed inflationary pressures, higher crude oil prices, and ongoing pressure on the Indian rupee.
The increase raises the borrowing cost for banks, which may lead to higher lending rates, higher EMIs, or longer repayment periods for floating-rate borrowers.
