The Hindu·2 min read·medium

RBI MPC meeting LIVE updates: MPC hikes repo rate by 25 basis points to 5.50%

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The Hindu Bureau
RBI MPC meeting LIVE updates: MPC hikes repo rate by 25 basis points to 5.50%
✦AI Summary

The Reserve Bank of India has increased the repo rate by 25 basis points to 5.50% in response to rising inflation caused by the ongoing conflict in West Asia. Governor Sanjay Malhotra indicated that further rate cuts are unlikely in the near term.

Why it matters

This monetary policy shift signals a tightening economic environment in India, directly impacting borrowing costs and consumer spending.

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The MPC has also decided to revise the policy stance to “calibrated tightening,” Reserve Bank Governor Sanjay Malhotra said.

“Rate cut is off the table in the near term,” he added.

The Reserve Bank of India announced its bi-monthly monetary policy on Wednesday (October 7, 2026), unanimously deciding to increase the repo rate by 25 basis points, from 5.25% to 5.50%. The key rate hike after nearly three-and-a half years comes as inflation pressures rise due to the continuing West Asia conflict.

Repo rate was cut to 5.25% in December 2025 and since then it was put on hold till today.

Published - October 07, 2026 10:00 am IST

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