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RBI raises repo rate to 5.50% amid rising inflation

Updated 22 times since CLSTR started tracking revisions of this situation.

What changed

2026-10-19 23:01 UTC → 2026-10-26 02:02 UTC · added removed

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. Inflationary pressures have intensified, with retail inflation rising In its economic outlook, the RBI raised its GDP growth forecast for FY 2026-27 to 5.54% in September 2026, driven largely by food inflation. Significant price spikes were noted in onions and garlic, 7.1% from 6.7%, while rural inflation reached 6.08%, exceeding increasing the RBI’s upper tolerance limit. Wholesale retail inflation also accelerated from 9.92% forecast to 11.39%. 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 monetary environment, the State Bank of India (SBI) has increased its key lending rates. On October 15, 2026, SBI increased its home loan interest rates by 25 basis points, affecting customers with loans linked to the External Benchmark Linked Rate (EBLR) and points on October 15, 2026. While the Repo Linked Lending Rate (RLLR). Revised rates for regular home loans now range from 7.50% rate hike aims to 8.80%. Following these developments, control inflation, concerns have been raised regarding household debt and financial stability. Additionally, SBI Funds Management indicated noted that a recent Rs 2.5 lakh crore liquidity injection by the RBI may need appears difficult to increase reconcile with the benchmark repo rate to at least 6.25% central bank’s efforts to effectively manage persistent inflation risks. This would represent maintain a total increase of 75 basis points from the previous level. The fund house warned that elevated crude oil prices, food inflation, and strong domestic demand could cause inflation to exceed the RBI’s 6% upper tolerance limit for two consecutive quarters, making rate cuts unlikely in the near term. tight monetary policy.

Versions

  1. 2026-10-26 02:02 UTC RBI raises repo rate to 5.50% amid rising inflation
  2. 2026-10-19 23:01 UTC RBI raises repo rate to 5.50% amid rising inflation
  3. 2026-10-18 12:49 UTC RBI raises repo rate to 5.50% amid rising inflation
  4. 2026-10-18 09:23 UTC RBI raises repo rate to 5.50% amid rising inflation
  5. 2026-10-17 23:42 UTC RBI raises repo rate to 5.50% amid rising inflation
  6. 2026-10-17 21:54 UTC RBI raises repo rate to 5.50% amid rising inflation
  7. 2026-10-13 07:17 UTC RBI raises repo rate to 5.50% amid rising inflation
  8. 2026-10-13 04:51 UTC RBI raises repo rate to 5.50% amid rising inflation
  9. 2026-10-12 14:05 UTC RBI raises repo rate to 5.50% amid rising inflation
  10. 2026-10-12 06:02 UTC RBI raises repo rate to 5.50% amid inflation concerns
  11. 2026-10-09 08:26 UTC RBI raises repo rate to 5.50% amid inflation concerns
  12. 2026-10-08 06:25 UTC RBI raises repo rate to 5.50% amid inflation concerns
  13. 2026-10-08 05:14 UTC RBI raises repo rate to 5.50% amid inflation concerns
  14. 2026-10-07 11:58 UTC RBI raises repo rate to 5.50% amid inflation concerns
  15. 2026-10-07 05:30 UTC RBI raises repo rate to 5.50% amid inflation concerns
  16. 2026-10-07 04:57 UTC RBI monetary policy outlook and market reaction
  17. 2026-10-07 04:55 UTC RBI monetary policy outlook and market reaction
  18. 2026-10-07 03:05 UTC Reserve Bank of India monetary policy outlook
  19. 2026-10-06 19:16 UTC Reserve Bank of India monetary policy outlook
  20. 2026-10-05 12:02 UTC Reserve Bank of India monetary policy outlook
  21. 2026-10-05 03:58 UTC Reserve Bank of India monetary policy outlook
  22. 2026-10-04 07:21 UTC Reserve Bank of India monetary policy outlook
  23. 2026-10-03 04:49 UTC Reserve Bank of India monetary policy outlook

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