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The RBI MPC has hiked repo rate to 5.50%. The Reserve Bank of India raised its benchmark repo rate by 25 basis points to 5.50% on October 7, 2026, marking its first interest rate increase in nearly four years.
Some of the important decisions taken in MPC meeting are:
- Policy Repo Rate increased to 5.50%
- Marginal Standing Facility (MSF) rate & Bank Rate stands adjusted at 5.75%
- Standing Deposit Facility (SDF) rate stands adjusted at 5.25%
- Real GDP growth for 2026-27 is projected at 7.1%
- CPI Inflation for 2026-27 is projected at 5.2%
The Monetary Policy Committee (MPC) held its 63rd meeting from October 5 to 7, 2026, under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India. The MPC members Dr. Nagesh Kumar, Shri Saugata Bhattacharya, Prof. Ram Singh, Dr. Poonam Gupta and Shri Indranil Bhattacharyya attended the meeting.
The MPC voted unanimously to increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 bps to 5.50 per cent. Consequently, the standing deposit facility (SDF) rate stands adjusted at 5.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 5.75 per cent.
Real GDP growth for 2026-27 is projected at 7.1 per cent, with Q2 at 7.2 per cent; Q3 at 6.9 per cent and Q4 at 6.8 per cent. Real GDP growth for Q1:2027-28 is projected at 7.1 per cent.
CPI inflation increased to 4.8 per cent in August 2026 from 4.5 per cent in July. CPI inflation is projected to be 5.2 per cent for 2026-27 with Q2 at 4.9 per cent; Q3 at 6.0 per cent; and Q4 at 5.7 per cent. Inflation for Q1:2027-28 is projected at 5.6 per cent with risks being evenly balanced. Core inflation is projected at 4.4 per cent for 2026-27.
The minutes of the MPC’s meeting will be published on October 21, 2026. The next meeting of the MPC is scheduled for December 2 to 4, 2026.
