Brief by Shorts91 Newsdesk / 05:56am on 07 Oct 2026,Wednesday India
The Reserve Bank of India’s Monetary Policy Committee raised the repo rate by 25 basis points to 5.50%, its first hike since February 2023, citing rising inflation and economic pressures. The unanimous decision followed its October 5-7 meeting and shifted the policy stance to “calibrated tightening”, signalling that rate cuts are off the table near term. Governor Sanjay Malhotra said headline CPI inflation is expected to average 5.8% over the next three quarters, with full-year inflation projected at 4.4%. The RBI cited higher global food and energy prices, market volatility, tighter financial conditions, trade uncertainty and a stronger US dollar. Future action will depend on evolving inflation, growth and price pressures.
