RBI MPC meeting October 2026: The Reserve Bank of India (RBI), on Wednesday, 7 October, raised the repo rate by 25 basis points to 5.50%. It is the first rate hike since February 2023, when it raised rates by 25 basis points. The members of the Monetary Policy Committee (MPC) of the central bank voted unanimously to raise rates by 25 bps.
The RBI MPC voted in a 4-2 majority to change the policy stance to "calibrated tightening", underscoring that, given the current situation, rate cuts are not a possibility in the near term. There could be further hikes or a pause on the current interest rates.
The RBI Governor Sanjay Malhotra, in his speech, flagged the threat of inflation, citing that global inflation may increase sharply, prompting global monetary tightening.
"The RBI's October hike acknowledges that cyclical inflation risks are no longer benign. A change in stance also underscored the RBI MPC's hawkish intent. Against a backdrop of elevated oil prices, tighter global conditions, and risks to food inflation from unfavourable weather, policymakers have chosen to reinforce inflation credibility before risks become entrenched," said Governor Malhotra.
(This is a developing story. Please check back for fresh updates.)