The Monetary Policy Committee began its October review with economists expecting another hold, and the decision is due on 7 October.

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• The MPC, chaired by RBI Governor Sanjay Malhotra, is meeting from 5 to 7 October 2026, with the announcement scheduled for 7 October.
• The policy repo rate stands at 5.25 percent, unchanged since the 25 basis point cut in December 2025.
• The RBI cut the repo rate by a cumulative 125 basis points from 6.50 percent in the easing cycle that began in February 2025.
• At its meeting on 5 August 2026, the MPC voted 6–0 to hold the rate and retained its neutral stance.
• The rate has been held at the April, June and August 2026 reviews as well, with the RBI waiting for earlier cuts to transmit.
• The Standing Deposit Facility rate is 5.00 percent, while the Marginal Standing Facility rate and the Bank Rate are 5.50 percent.
• The repo rate is the rate at which the RBI lends to banks against government securities under the Liquidity Adjustment Facility.
• A neutral stance signals that future rate decisions will depend on incoming data rather than a fixed direction.
• Retail inflation has moved back above the 4 percent target, and most economists expect the committee to hold the rate again.
• Home loans linked to the repo-based external benchmark respond to policy changes faster than older MCLR-linked loans.
• The next MPC meeting in the FY 2026-27 schedule is on 2 to 4 December 2026.