RBI hikes repo rate 25 bps to 5.5%, shifts stance
In short
The RBI’s policy committee raised the repo rate by 25 basis points to 5.5% at its October 2026 meeting. It also changed its stance to “calibrated tightening.”
The bank also raised its FY2026-27 growth forecast to 7.1% and its inflation view to 5.2%. The short-term effect is tighter borrowing conditions, but the full market impact is not stated.
What the reporting says
The RBI MPC raised the repo rate by 25 basis points to 5.5% at its October 2026 policy meeting, and changed its stance to calibrated tightening. Publisher-supplied summaries also say the central bank lifted its FY2026-27 growth forecast to 7.1% from 6.7% and raised projected inflation to 5.2%. The immediate effect is tighter policy, while the exact market response is not stated in the available reporting.
Why it matters
The RBI MPC raised the repo rate by 25 basis points to 5.5% at its October 5-7, 2026 meeting and shifted its stance to calibrated tightening from neutral. Publisher summaries say it also raised FY2026-27 growth to 7.1% and inflation to 5.2%. That points to tighter monetary conditions for borrowers, banks and rate-sensitive markets, but the reporting does not say how loans, deposits or equities moved.