The MPC's unanimous October 7 move came with a higher FY27 growth forecast of 7.1 per cent and a CPI inflation projection of 5.2 per cent.

BulletsIn

• The RBI's Monetary Policy Committee raised the policy repo rate by 25 basis points to 5.50 per cent on October 7, 2026.
• The decision came at the MPC's 63rd meeting, held from October 5 to 7 under Governor Sanjay Malhotra.
• The vote was unanimous.
• The MPC changed its stance from neutral to calibrated tightening.
• The Standing Deposit Facility rate is now 5.25 per cent, while the Marginal Standing Facility rate and Bank Rate are 5.75 per cent.
• The repo rate had stood at 5.25 per cent, unchanged at the August meeting.
• The RBI raised its FY27 real GDP growth forecast to 7.1 per cent and its CPI inflation projection to 5.2 per cent.
• Borrowers with repo-linked floating-rate loans may see higher rates or EMIs at their next reset.
• Government bond yields edged higher because the shift in stance surprised the market.
• The MPC minutes, published on October 21, showed a more hawkish tone inclined towards future policy tightening.
• The next MPC meeting is scheduled for December 2-4, 2026.

Tags: RBIMonetaryPolicy, RepoRate, CalibratedTightening