RBI Raises Repo Rate to 5.50%, Shifts to Calibrated Tightening
On October 7, 2026, the Reserve Bank of India's Monetary Policy Committee raised the policy repo rate by 25 basis points to 5.50%, shifting its stance from neutral to calibrated tightening. The standing deposit facility rate is now 5.25%, and the marginal standing facility and bank rates are 5.75%. This signals that rate cuts are unlikely in the near term. The repo rate had been cut to 5.25% in December 2025 and held steady in subsequent meetings.
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