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Reserve Bank of India: decision of 7 October 2026
The Reserve Bank of India's Monetary Policy Committee raised the policy repo rate by 25 basis points to 5.50% and changed its stance from neutral to calibrated tightening.
Decision
raise
- Rate
- 5.25%↑5.50%
- Change
- +25 bp
- Vote
- unanimous
- Announced
Sources
- Statement
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=63742- Recorded
- 7 Oct 2026
- Data
- JSON
What the bank said
The MPC said inflation and its outlook were no longer benign, with headline CPI inflation expected to average almost 5.8% over the next three quarters and core inflation projected at 4.4% for the year.
It noted that CPI inflation rose to 4.8% in August 2026, with core inflation also picking up and food price increases becoming more broad-based.
The MPC said there was some evidence of elevated inflation expectations and generalisation of inflation, and that strong growth in monetary and credit aggregates posed risks.
Guidance. The MPC said the calibrated tightening stance means rate cuts are off the table in the near term and the next move can only be a hike or a pause, depending on conditions and the outlook.
Dissent
On the stance, two members, Dr. Nagesh Kumar and Prof. Ram Singh, were of the view that it should be retained at neutral.
Before and after
- Previous decision: 5 Aug 2026, held the policy repo rate at 5.25%.
- Next scheduled meeting: (calendar).
- All Reserve Bank of India decisions and the rate history