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Reserve Bank of India raises repo rate to 5.50%
The Reserve Bank of India (RBI) has raised its benchmark repo rate by 25 basis points to 5.50 per cent, marking its first increase since February 2023. The decision, made by the six-member Monetary Policy Committee (MPC), also includes raising the Standing Deposit Facility (SDF) rate to 5.25 per cent and adjusting the Marginal Standing Facility (MSF) and bank rate to 5.75 per cent.
Governor Sanjay Malhotra stated that the inflation outlook is no longer benign, citing rising food and energy prices, alongside supply-side risks such as El Niño and geopolitical tensions in West Asia. Retail inflation (CPI) rose to 4.82 per cent in August. Consequently, the MPC shifted its policy stance from 'neutral' to 'calibrated tightening'.
Despite inflationary concerns, the RBI raised its FY27 GDP growth projection to 7.1 per cent from 6.7 per cent, reflecting resilient domestic economic activity. The rate hike is expected to increase borrowing costs for consumers and businesses, potentially impacting home, car, and personal loans.
Entities
Federal Reserve · Federal Reserve Bank of San Francisco · India · Mary Daly · Monetary Policy Committee · Reserve Bank of India · Sanjay Malhotra
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Bank of America anticipates a 25-basis-point rate hike in October due to energy prices and food inflation. www.ibtimes.co.in
- [● 5 SOURCES] The last time the RBI increased the repo rate was in February 2023. www.ibtimes.co.in · www.millenniumpost.in · www.news9live.com
- [DISPUTED] The current benchmark repo rate is 5.25%. munsifdaily.com · bengali.news18.com · hindi.webdunia.com · www.ibtimes.co.in · www.millenniumpost.in · +2 more
- [● 9 SOURCES] The Reserve Bank of India will announce its monetary policy decision on Wednesday, October 7, 2026. munsifdaily.com · bengali.news18.com · hindi.webdunia.com · www.ibtimes.co.in · www.millenniumpost.in · +2 more
- [○ 1 SOURCE] The five-year benchmark yield could rise to 7 per cent if the central bank maintains aggressive policy tightening. munsifdaily.com
- [● 3 SOURCES] A majority of economists surveyed in a PTI poll expect the RBI to raise the repo rate by 25 basis points. www.news9live.com · www.millenniumpost.in
- [● 2 SOURCES] Union Bank of India predicts a 25-basis-point hike in October and further increases in FY27, potentially reaching 5.75% to 6%. www.newsbytesapp.com
- [● 2 SOURCES] EY suggests a high probability of a 25-basis-point hike and a change in policy stance. www.newsbytesapp.com
- [○ 1 SOURCE] The Indian government bond yield curve is expected to flatten due to RBI liquidity withdrawals. munsifdaily.com
- [● 3 SOURCES] A majority of economists surveyed in a Reuters poll expect the RBI to raise the repo rate by 25 basis points. www.millenniumpost.in · www.tekedia.com
- [● 2 SOURCES] Union Bank of India expects a 25-basis-point hike in October and further increases in FY27. www.newsbytesapp.com
- [● 3 SOURCES] Rising inflation and high crude oil prices are driving expectations for a rate hike. www.ibtimes.co.in · www.newsbytesapp.com