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RBI Raises Repo Rate By 25 Bps In First Hike In Over Three Years
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CNBC TV18•07-10-2026, 10:10
RBI Raises Repo Rate By 25 Bps In First Hike In Over Three Years
- •The Monetary Policy Committee unanimously voted to raise the policy repo rate by 25 basis points to 5.5 percent.
- •The policy stance was shifted from neutral to calibrated tightening with a 4:2 majority.
- •RBI Governor Sanjay Malhotra stated that rate cuts are off the table in the near term amid global headwinds and persistent oil prices.
- •The central bank projects Consumer Price Inflation to average 5.8 percent over the next three quarters.
Key Questions Answered
The Reserve Bank of India's Monetary Policy Committee raised the policy repo rate by 25 basis points to 5.5% following its meeting on Wednesday, October 7, 2026.
The MPC changed its policy stance to "Calibrated Tightening" from "Neutral" with a 4:2 majority.
RBI Governor Sanjay Malhotra stated that given current conditions, rate cuts are off the table in the near-term, meaning future policy action will only involve a rate hike or a pause.
