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RBI Policy Update: Repo rate hiked by 25 bps to 5.50 percent
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CNBC Awaaz•07-10-2026, 10:48
RBI Policy Update: Repo rate hiked by 25 bps to 5.50 percent
- •The Monetary Policy Committee of the Reserve Bank of India increased the repo rate by 25 basis points to 5.50 percent.
- •Retail inflation rose to 4.8 percent in August due to surging food and fuel prices, prompting a shift in stance to calibrated tightening.
- •The RBI projected real GDP growth for the financial year 2026-27 at 7.1 percent while maintaining optimism in domestic economic resilience.
Key Questions Answered
The Monetary Policy Committee of the RBI increased the repo rate by 25 basis points to 5.50 percent during its decision on October 7, 2026.
The RBI has projected real GDP growth for the financial year 2026-27 at 7.1 percent, with specific quarterly forecasts of 7.2 percent for the second quarter, 6.9 percent for the third quarter, and 6.8 percent for the fourth quarter.
Retail inflation rose to 4.8 percent in August due to food and fuel-related inflation, with notable increases in items like sugar and onions. Additionally, the RBI projected CPI inflation for financial year 2026-27 at 5.2 percent, keeping a close eye on energy prices, supply chain disruptions from West Asia, and risks from a weak monsoon and El Niño.
