# RBI raises repo rate to 5.50% amid rising inflation > Live situation record from CLSTR: https://clstr.news/situations/reserve-bank-of-india-monetary-policy-outlook > Updated: 2026-10-24T10:27:06.000Z. Sources: 77. Developments: 8. The Reserve Bank of India (RBI) has increased the policy repo rate by 25 basis points, raising it from 5.25% to 5.50%. This marks the first rate hike since February 2023. Following a meeting of the Monetary Policy Committee (MPC), the central bank shifted its policy stance from ‘neutral’ to ‘calibrated tightening,’ signaling that further increases remain a possibility to combat inflation. Governor Sanjay Malhotra noted that the decision was driven by rising domestic inflation—with CPI inflation reaching 4.82% in August—and global pressures, including crude oil price volatility and a weakening rupee. In its economic outlook, the RBI raised its GDP growth forecast for FY 2026-27 to 7.1% from 6.7%, while increasing the retail inflation forecast to 5.2% from 5.0%. Financial institutions have offered varying forecasts for future tightening. Goldman Sachs economist Santanu Sengupta projects the RBI may implement three additional hikes by June 2027, totaling approximately 75 basis points. Meanwhile, Bank of America Securities suggested the RBI could raise rates by a total of 100 basis points through the first half of 2027. In response to the tightening environment, the State Bank of India (SBI) increased its home loan interest rates by 25 basis points on October 15, 2026. While the rate hike aims to control inflation, concerns have been raised regarding household debt and financial stability. Additionally, SBI noted that a recent Rs 2.5 lakh crore liquidity injection by the RBI appears difficult to reconcile with the central bank’s efforts to maintain a tight monetary policy. ## Claims - The repo rate rose from 5.25% to 5.50%. (disputed by 16 sources) - The BSE Sensex closed at 72,638.70, a decline of 429.11 points or 0.59 per cent. (disputed by 6 sources) - The current repo rate stands at 5.25% following rate cuts in 2025 (disputed by 2 sources) - The Sensex fell 462.44 points (0.63%) to reach 72,605.37 (disputed) - The repo rate hike is the first increase since February 2023. (corroborated by 17 sources) - The Monetary Policy Committee shifted its stance from 'neutral' to 'calibrated tightening'. (corroborated by 10 sources) - The RBI increased its retail inflation (CPI) forecast for FY 2026-27 from 5.0 per cent to 5.2 per cent. (corroborated by 5 sources) - Brent crude oil prices traded above 101 USD per barrel. (corroborated by 4 sources) - The six-member Monetary Policy Committee voted unanimously to increase the repo rate. (corroborated by 4 sources) - The RBI increased its GDP growth forecast for FY 2026-27 from 6.7 per cent to 7.1 per cent. (corroborated by 4 sources) ## Timeline ### 2026-10-24: Reserve Bank of India rate hike impacts household debt and liquidity The RBI has raised its repo rate to 5.50%, pressuring household finances, while a large liquidity injection has drawn criticism from SBI for potentially contradicting tightening goals. 4 sources. https://clstr.news/cluster/reserve-bank-of-india-rate-hike-impacts-household-debt-and-liquidity ### 2026-10-18: RBI repo rate may need to reach 6.25% to curb inflation, says SBI Funds Management SBI Funds Management suggests the Reserve Bank of India may need to raise the repo rate to 6.25% to combat rising retail and wholesale inflation. 4 sources. https://clstr.news/cluster/rbi-repo-rate-may-need-to-reach-625-to-curb-inflation-says-sbi-funds-management ### 2026-10-16: Reserve Bank of India raises repo rate to 5.50 percent The Reserve Bank of India raised its repo rate to 5.50 percent to combat inflation and support the rupee, marking its first rate hike in 44 months alongside increased cash reserve requirements. 2 sources. https://clstr.news/cluster/reserve-bank-of-india-raises-repo-rate-to-550-percent-1 ### 2026-10-16: State Bank of India raises home loan interest rates by 25 bps State Bank of India has hiked home loan interest rates by 25 basis points, affecting EBLR and RLLR-linked loans. Borrowers may see higher monthly EMIs or extended loan tenures. 6 sources. https://clstr.news/cluster/state-bank-of-india-raises-home-loan-interest-rates-by-25-basis-points ### 2026-10-09: Reserve Bank of India raises repo rate to 5.5% The RBI has raised its repo rate by 25 basis points to 5.5%. Analysts suggest further hikes may occur through June 2027 to combat inflation risks posed by El Nino and global market volatility. 6 sources. https://clstr.news/cluster/reserve-bank-of-india-raises-repo-rate-to-55 ### 2026-10-07: Reserve Bank of India raises repo rate to 5.50% The RBI raised the repo rate by 25 basis points to 5.50%, its first hike since February 2023. The central bank also shifted to a 'calibrated tightening' stance and raised its FY 2026-27 GDP and inflation growth 62 sources. https://clstr.news/cluster/indian-stock-markets-fall-ahead-of-rbi-policy-decision ### 2026-10-02: RBI Monetary Policy Committee meeting expected to address potential rate hike Economists expect the Reserve Bank of India to potentially raise the repo rate by 25 basis points during its October 5-7 meeting to combat rising inflation and global economic pressures. 12 sources. https://clstr.news/cluster/reserve-bank-of-india-mpc-to-decide-on-repo-rate-in-october-meeting ### 2026-09-30: Reserve Bank of India rate hike forecasts rise amid inflation risks Financial analysts from SBI Research and Bank of America forecast potential interest rate hikes by the Reserve Bank of India due to rising inflation and global economic risks. 5 sources. https://clstr.news/cluster/reserve-bank-of-india-rate-hike-forecasts-rise-amid-inflation-risks --- Cite as: RBI raises repo rate to 5.50% amid rising inflation. CLSTR, https://clstr.news/situations/reserve-bank-of-india-monetary-policy-outlook