RBI Hikes Repo Rate by 25 Basis Points to 5.50% in October 2026



Quick Summary
The Reserve Bank of India (RBI) has increased its policy repo rate by 25 basis points, bringing it to 5.50%. This decision, made unanimously by the Monetary Policy Committee, aims to combat rising inflation and global economic uncertainty. The RBI has also shifted its monetary policy stance to 'calibrated tightening', signalling a cautious approach to future interest rate adjustments.

The Reserve Bank of India (RBI) has increased the policy repo rate by 25 basis points to5.50% from 5.25%, following the Monetary Policy Committee (MPC) meeting held from October 5 to October 7, 2026. The decision was taken unanimously by the six-member committee amid rising inflationary pressures and global economic uncertainty. Along with the repo rate hike, the RBI has shifted its monetary policy stance from 'neutral' to 'calibrated tightening', signalling a cautious approach towards future i
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FAQ :

The new policy repo rate has been increased by 25 basis points to 5.50%.

The RBI cited rising inflationary pressures and uncertainty in the global economic environment as key reasons for the increase.

The RBI has shifted its monetary policy stance from 'neutral' to 'calibrated tightening'.

The Standing Deposit Facility (SDF) Rate is now 5.25%, the Marginal Standing Facility (MSF) Rate is 5.75%, and the Bank Rate is also 5.75%.

With the shift to 'calibrated tightening', the RBI has indicated that rate cuts are not expected in the near term.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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