The benchmark 10-year yield rose six basis points after the RBI raised the repo rate to 5.50 per cent and signalled that future action would be a hike or pause
RBI MPC October 2026: The policy committee raised the repo rate to 5.5% and changed the stance to 'calibrated tightening'
The RBI MPC has raised the repo rate by 25 basis points to 5.5 per cent. Here is a look at the central bank's five previous rate hikes and the inflation backdrop at the time
RBI MPC October 2026: The policy committee raised the repo rate to 5.5% and changed the stance to 'calibrated tightening'
The RBI will allow interoperability among account aggregators and enable bank deposit details in consolidated account statements, alongside a new financial markets committee
The RBI's new calibrated tightening stance signals that further rate hikes remain possible as the central bank responds to inflation and economic risks
RBI MPC October 2026: At its policy meeting, held between October 5 and October 7, the committee changed the stance to 'calibrated tightening'
A hike would put the Reserve Bank of India alongside Asian peers that have already begun tightening and mark the first such move under Governor Sanjay Malhotra
RBI MPC meet: At its August monetary policy review, the RBI kept the repo rate unchanged at 5.25 per cent and maintained its 'neutral' stance
For the repo rate to remain an effective signal, the weighted average call rate needs to be aligned with it
The Reserve Bank's Monetary Policy Committee began its three-day meeting on Monday and is likely to raise rates by 25 basis points, aligning with the central banks' hawkish stance amid escalating conflicts in West Asia that pose risks for domestic inflation. An interest rate hike by the RBI in its upcoming monetary policy would mark a stance reversal, following rate cuts in 2025 and a prolonged pause thereafter, according to a PTI poll of 16 economists and bankers. "Insights, assessments, and the way forward-set to unfold soon," the Reserve Bank said in a social media post while announcing that the monetary policy statement will be announced on October 7 at 10 am. The last repo rate hike was in February 2023, when the RBI raised the rate by 0.25 per cent to 6.50 per cent. It kept the rate unchanged through 2023-24 before beginning its rate-cut cycle in 2025. Currently, the RBI's policy repo rate stands at 5.25 per cent. A majority of participants in the PTI poll expect a rate hike
Nearly 60% of economists polled by Reuters, 35 out of 61, expect a 25-basis-point rate hike at RBI's policy meeting on Wednesday
If we can sustain our growth rates, I think the inflow of risk capital is also likely to persist, says Neelkanth Mishra, India's executive director at the World Bank
The Reserve Bank of India (RBI) is likely to increase the repo rate by 0.25 per cent in the October monetary policy review due to mounting inflationary pressure amid the re-escalation of the West Asia crisis and also the rate hikes by global central banks, according to economists and bankers. If the RBI increases the rate in the upcoming policy, it would mark a reversal in the interest rate policy, which has witnessed rate cuts in 2025 and an extended pause thereafter, according to a PTI poll of 16 economists and bankers. The last repo rate hike was in February 2023, when the RBI raised the rate by 0.25 per cent to 6.50 per cent; it then kept the rate unchanged through 2023-24 before beginning its rate-cut cycle in 2025. Currently, the RBI's policy repo rate stands at 5.25 per cent. "Coordination with global central bank hikes, rising inflation risks and strong growth momentum provide policy space to hike," said Kanika Pasricha, chief economic advisor at Union Bank of India. Furthe
RBI's interest rate decision, TCS' earnings, crude oil prices and global bond yields will be important factors to determine stock market movement this week, analysts said. Macroeconomic data announcements and foreign investors' trading activity will also guide market trends, they added. "RBI's monetary policy meeting will be closely watched. The policy stance, inflation outlook and growth projections will provide important cues on the near-term trajectory of domestic interest rates and financial markets. "This week will also mark the beginning of the earnings season, with index heavyweight TCS and retail major DMart among the key companies scheduled to announce their results," Ajit Mishra, SVP Research, Religare Broking, said. On the data front, India's final HSBC Services PMI and Composite PMI readings for September are scheduled to be released on October 6, he said. TCS is slated to announce its September quarter earnings on October 8. "Crude oil remains the most immediate ...
We are still in the early stages of reaping the full benefits of FIT. It is, therefore, imperative to remain focused on the primary objective, he said
"By being anti-inflationary, monetary policy makes the biggest contribution to growth"
RBI's MPC will meet from October 5-7 to decide on interest rates; economists expect a 25-basis-point hike to 5.5 per cent as inflation rises and global central banks tighten policy
Beyond February 2027, Nomura expects the probability of further rate increases to diminish, citing the potential for a slowdown in consumption.
Experts said that the key point is not the size of the increase, but the change in direction, and expect the RBI to consider 50bps hikes in both the October and December policy meetings this year