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Rate Cuts Off The Table As RBI Hikes Repo Rate By 25 Bps
M
Moneycontrol•07-10-2026, 14:41
Rate Cuts Off The Table As RBI Hikes Repo Rate By 25 Bps
- •Reserve Bank of India Governor Sanjay Malhotra stated that rate cuts are off the table and future actions will be a hike or a pause.
- •The monetary policy committee raised the repo rate by 25 bps to 5.5 percent, marking the first hike in three years.
- •The RBI shifted its monetary stance from neutral to calibrated tightening.
- •Experts suggest the current hiking cycle will be shallow with potential for another 25 to 50 bps of rate hikes going forward.
Key Questions Answered
The Reserve Bank of India raised the repo rate by 25 basis points to 5.5 percent, marking its first hike in three years, while shifting its policy stance from neutral to calibrated tightening.
Governor Sanjay Malhotra explained that calibrated tightening signals a milder, more data-dependent form of tightening where future actions will be either a pause or a hike depending on macroeconomic developments.
Economists like Rajani Sinha expect the current hiking cycle to be shallow with potential for another 25-50 bps of hikes, while Indranil Pan notes that a December rate hike is now a certainty.
