Governor’s Statement, October 7, 2026
In short
On October 7, 2026, the Reserve Bank of India’s Monetary Policy Committee unanimously raised the policy repo rate under the liquidity adjustment facility by 25 bps to 5.50 per cent after its 63rd meeting held from October 5 to 7, 2026. The standing deposit facility rate was adjusted to 5.25 per cent, while the marginal standing facility rate and the Bank Rate were set at 5.75 per cent. In simple terms, borrowing costs are going up, which usually makes loans a bit more expensive and is meant to cool inflation. The committee also changed its stance to calibrated tightening.
Why it matters
A monetary policy decision sets the rate at which banks borrow from the RBI, which feeds through to loan and deposit rates over the following months. The stance and the inflation/growth projections in the statement carry as much information as the rate itself. This classification and note were written here from Reserve Bank of India's own published document.