Reserve Bank of India raises repo rate to 5.5% and adopts calibrated tightening
On October 7, 2026, the Reserve Bank of India raised its benchmark repo rate by 25 basis points, from 5.25% to 5.50%, its first hike since February 2023. The Monetary Policy Committee also shifted its policy stance from neutral to calibrated tightening, citing inflation and growth risks associated with higher oil prices and global monetary tightening.
This is a confirmed, forward-looking monetary-policy action rather than a market-performance observation. The Reserve Bank of India raised the repo rate by 25 basis points from 5.25% to 5.50% and shifted its stance from neutral to calibrated tightening, directly affecting Indian borrowing costs, liquidity, currency expectations, bond valuations and rate-sensitive sectors. The rate increase was partly anticipated—nearly 60% of economists in the cited Reuters poll expected it—so surprise is moderate, but the first hike since February 2023 and the stance change make the development materially decision-relevant. The occurrence time is estimated at 04:30 UTC from the explicitly scheduled 10:00 a.m. India-time decision; reports published shortly afterward confirm the action occurred, so the publication timestamp is not used as the event time. Approved stakeholders are limited to Indian listed companies with a clear funding-cost, loan-repricing, sovereign-duration or vehicle-demand transmission channel; more indirect and conditional currency or commodity exposures are excluded.
The Indian central bank raised its benchmark repo rate (INREPO=ECI) by 25 basis points to 5.5% on Wednesday, marking the first rise in nearly four years amid mounting inflation and strong economic growth.
Nearly 60% of economists in a Reuters poll expected a 25 bps increase in the repo rate.
The Reserve Bank of India also changed its stance from "neutral" to "calibrated tightening", citing growth and inflation risks due to higher oil prices and global monetary policy tightening.
The Reserve Bank of India hiked its benchmark repo rate by 25 basis points to 5.5%, its first increase since February 2023
The central bank changed its policy stance to "calibrated tightening," citing growth and inflation risks due to higher oil prices and global monetary policy tightening.
The RBI now expects Q2 FY27 CPI inflation at 4.9%, up from 4.7% earlier. The projection for Q3 has been raised to 6% from 5.9%, while Q4 inflation is seen at 5.7% compared with 5.5% earlier.
the central bank chief said on Wednesday.
the central bank chief said on Wednesday.
following a decision to hike India's benchmark repo rate by 25 basis points for the first time in nearly four years.
Within this financial year itself, I expect a large amount of this liquidity to get absorbed.
The Reserve Bank of India raised the policy repo rate by 25 basis points to 5.5%, marking the first rise in nearly four years, and signalled more hikes by changing its stance to "calibrated tightening" from "neutral".
The Reserve Bank of India raised its key interest rate by 25 basis points to 5.5% as expected and shifted its stance to "calibrated tightening" from "neutral," signalling that next moves would be a hike or a pause.
The Reserve Bank of India has stated its intent to stabilize the undervalued rupee, which reached a five-month low. Despite raising the policy rate for the first time since February 2023, the rupee has fallen due to foreign capital outflows.
Interventions by the central bank included dollar-rupee swaps to manage liquidity effectively.
The Reserve Bank of India raised its benchmark repo rate by 25 basis points to 5.5% on Wednesday, marking the first rise in nearly four years amid mounting inflation and strong economic growth.
The central bank also signalled possibility of more rate hikes by changing its stance from "neutral" to "calibrated tightening"
The Reserve Bank of India raised its key interest rate by 25 basis points to 5.50%, while shifting its stance to "calibrated tightening" from "neutral".
It also raised its inflation forecast by 20 bps to 5.2%
Indian shares opened lower on Thursday, extending losses from the previous session after the central bank delivered a hawkish rate hike, while rising oil prices added to inflation worries.
Benchmarks Nifty and Sensex snapped a two-session winning run on Wednesday after the Reserve Bank of India raised its
The RBI raised its key policy rate by 25 basis points to 5.50% on Wednesday, abandoned its neutral stance and revised its inflation and growth projections higher.
Indian government bonds traded in a narrow range early Thursday as traders digested the Reserve Bank of India's first rate hike in nearly four years along with a shift to a "calibrated tightening" stance, signalling further policy action ahead.
The Reserve Bank of India raised the repo rate by 25 basis points, signaling potential further hikes.
Realtors' industry bodies CREDAI and NAREDCO have expressed concerns about rising home loan costs.