RBI raises repo rate to 5.50%, banks may lift FD rates
In short
The RBI raised the repo rate by 25 basis points, from 5.25% to 5.50%, at its October 2026 meeting.
Banks may raise fixed deposit rates after this move. The report says inflation and competition from other savings options are pushing banks, but it does not say when or by how much rates will change.
What the reporting says
The RBI increased the repo rate by 25 basis points from 5.25% to 5.50% at its October 2026 MPC meeting, according to an Economic Times Wealth summary. The report said banks are expected to raise fixed deposit rates soon, with rising retail inflation and competition from small savings schemes and government securities cited as pressure points. The exact timing and size of bank rate changes were not stated.
Why it matters
The RBI raised the repo rate to 5.50% from 5.25% at its October 2026 MPC meeting, based on an Economic Times Wealth summary. The report says banks may respond by lifting fixed deposit rates because retail inflation is rising and competition from small savings schemes and government securities is pressuring deposit pricing. The size and timing of any bank move were not given.