{"id":398254,"date":"2026-10-09T11:04:56","date_gmt":"2026-10-09T05:34:56","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=398254"},"modified":"2026-10-09T11:04:56","modified_gmt":"2026-10-09T05:34:56","slug":"rbi-hikes-repo-rate-to-5-50-percent-october-2026","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2026\/10\/09\/rbi-hikes-repo-rate-to-5-50-percent-october-2026\/","title":{"rendered":"RBI hikes repo rate to 5.50%; shifts policy stance to ‘calibrated tightening’"},"content":{"rendered":"
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On 7 October 2026, the Reserve Bank of India (RBI) released the Monetary Policy Statement<\/span> following the 63rd<\/span> meeting of the Monetary Policy Committee<\/span> (MPC) held from 5 to 7 October 2026 under the chairmanship of RBI Governor Sanjay Malhotra.<\/p>\n

The decision follows the Committee’s assessment of evolving domestic and global macroeconomic and financial conditions.<\/p>\n

Key Takeaways:<\/p>\n

    \n
  1. \n

    The MPC unanimously voted to increase the policy repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points to 5.50%.<\/span><\/p>\n<\/li>\n

  2. \n

    Consequently, the Standing Deposit Facility (SDF) rate stands adjusted at 5.25%, while the Marginal Standing Facility (MSF) rate and the Bank Rate have been increased to 5.75%.<\/span><\/p>\n<\/li>\n

  3. \n

    The MPC decided to change the policy stance to “calibrated tightening”.<\/p>\n<\/li>\n

  4. \n

    The RBI observed that the Indian economy has remained resilient despite continuing global headwinds, supported by strong private consumption, investment activity and robust exports.<\/p>\n<\/li>\n

  5. \n

    Real GDP growth for 2026-27 has been projected at 7.1%.<\/p>\n<\/li>\n

  6. \n

    Quarter-wise GDP growth projections are:<\/p>\n