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RBI MPC Meeting Tomorrow: Interest Rate, EMI Hike Likely? Experts Weigh In!
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News18•04-10-2026, 13:58
RBI MPC Meeting Tomorrow: Interest Rate, EMI Hike Likely? Experts Weigh In!
- •The RBI MPC meeting begins tomorrow, October 5, 2026, with economists expecting an interest rate hike.
- •Bank of America (BofA) forecasts a 25 basis point repo rate hike in October due to rising fuel prices and inflation.
- •SBI Research also predicts a 25 basis point repo rate hike, citing rising inflation and deteriorating global conditions.
- •CPI inflation rose from 4.45% in July to 4.82% in August, with crude oil prices adding pressure.
- •A repo rate increase could lead to higher EMIs for home and car loans, but potentially higher interest on fixed deposits (FDs).
Key Questions Answered
Economists and major financial institutions like Bank of America and SBI Research expect the Reserve Bank of India to implement a 25 basis point hike in the repo rate during the October 2026 monetary policy meeting due to rising inflation and fuel prices.
If the RBI raises the repo rate, banks are likely to increase their lending rates, which would lead to higher monthly EMIs for floating-rate home loans, car loans, and personal loans, while potentially offering better returns on fixed deposits.
The RBI faces diminishing room to keep rates unchanged due to rapidly rising consumer price inflation, growing food inflation, potential rabi crop risks from El Niño, increasing crude oil prices, and broader global economic pressures.
