RBI MPC meeting LIVE updates: MPC hikes repo rate by 25 basis points to 5.50%

Reserve Bank of India (RBI) Governor Sanjay Malhotra. File | Photo Credit: Reuters The Reserve Bank of India announced its bi-monthly monetary policy on Wednesday (October 7, 2026), unanimously deciding to increase the repo rate by 25 basis points, from 5.25% to 5.50%. The key rate hike after nearly three-and-a half years comes as inflation pressures rise due to the continuing West Asia conflict.Reserve Bank Governor Sanjay Malhotra announced the decision after the conclusion of the three-day meeting of the Monetary Policy Committee. The last repo rate hike was in February 2023, when the RBI raised the rate by 0.25%to 6.50%. It kept the rate unchanged through 2023-24 before beginning its rate-cut cycle in 2025. Also read | RBI may deliver two rate hikes by CY 2026: AnalystsA hike in the short-term lending rate (repo) by the RBI in its upcoming monetary policy would mark a stance reversal, following four rate cuts totalling 125 basis points in 2025 and a prolonged pause thereafter. Most experts opined that while a rate increase was imminent, some were of the view that the central bank may not go for a rate hike immediately.Follow LIVE updates here:October 07, 2026 10:20 Extent and duration of rate hike cycle contingent on actual growth inflation: RBI Governor“The extent and duration of the rate hike cycle will be contingent on the actual growth, developments and outlook of, especially of the underlying inflation, extent of broadening of price pressures, and second round effects of the supply shock,” RBI Governor Sanjay Malhotra said.October 07, 2026 10:17 Real GDP growth for FY27 projected at 7.1%The real GDP growth for FY27 projected at 7.1%, Sanjay Malhotra said, adding that it has been revised upwards by 40 basis points.The World Bank on Tuesday (October 6, 2026) raised India’s Gross Domestic Product (GDP) growth forecast for the current fiscal to 7.1%, up 0.5 percentage points from its April projections, driven by better-than-expected print for the first quarter.October 07, 2026 10:15 'Policy action can only be rate hike or pause'Announcing the RBI MPC meeting decisions, Mr. Malhotra stated that the policy action ahead can only be a rate hike or a pause given the evolving conditions.“Detailed explanation of our stance was given in my stance in April 2025,” he added.The rate decision comes after the conclusion of the three-day meeting of the Monetary Policy Committee.October 07, 2026 10:13 MPC revised policy stance to calibrated tightening: Sanjay MalhotraThe MPC has also decided to revise the policy stance to “calibrated tightening,” Reserve Bank Governor Sanjay Malhotra said.“Rate cut is off the table in the near term,” he added.October 07, 2026 10:09 RBI MPC hikes repo rate by 25 basis points to 5.50%The Reserve Bank of India announced its bi-monthly monetary policy on Wednesday (October 7, 2026), unanimously deciding to increase the repo rate by 25 basis points, from 5.25% to 5.50%. The key rate hike after nearly three-and-a half years comes as inflation pressures rise due to the continuing West Asia conflict.Repo rate was cut to 5.25% in December 2025 and since then it was put on hold till today.Lalatendu Mishra Published - October 07, 2026 10:00 am IST