RBI MPC flags widening inflationary pressures; two members oppose hawkish stance
The Reserve Bank of India's Monetary Policy Committee raised the repo rate by 25 basis points to 5.5% amid widening inflationary pressures, though two external members dissented against shifting to a tightening stance. Members highlighted risks from rising oil prices and the West Asia conflict.
Why it matters
Monetary policy decisions directly affect borrowing costs, inflation control, and overall economic growth in India.
RBI MPC flags widening inflationary pressures; two members oppose hawkish stance left RBI MPC members broadly acknowledged the risks posed by the West Asia conflict, rising oil prices and the spread of inflation Reuters Reuters https://th-i.thgim.com/public/incoming/gurdw2/article71608493.ece/alternates/FREE_1200/2026-10-21T131820Z_1815523608_RC2V80A88Y0T_RTRMADP_3_INDIA-ECONOMY-RATES-MINUTES.JPG FRANCIS MASCARENHAS FILE PHOTO: A Reserve Bank of India (RBI) logo is seen inside its headquarters in Mumbai, India, April 6, 2023. REUTERS/Francis Mascarenhas/File Photo RBI governor warns of rate hikes as inflation spreads beyond food and fuel MUMBAI Broadening inflationary pressures and the risk of second-round price increases dominated the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) deliberations in October, with members differing over the need to signal further monetary tightening, according to the minutes released on Wednesday. The MPC unanimously voted to raise the repo rate by 25 basis points (bps) to 5.5% at its October 5-7 meeting.
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