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RBI MPC hikes repo rate by 25 bps to 5.5% in October policy, changes stance to calibrated tightening

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RBI MPC hikes repo rate by 25 bps to 5.5% in October policy, changes stance to calibrated tightening

RBI MPC hikes repo rate by 25 bps to 5.5% in Oct policy, changes stance to calibrated tightening

RBI Governor Sanjay Malhotra also announced that the standing deposit facility (SDF) rate under the liquidity adjustment facility (LAF) stands adjusted to 5.25 per cent, while the marginal standing facility (MSF) rate and the Bank Rate have been revised to 5.75 per cent. The MPC also decided to shifts stance to calibrated tightening.

The Reserve Bank of India’s (RBI) Monetary Policy Committee ( MPC ) on Wednesday decided to increase the repo rate by 25 basis points to 5.5 per cent, citing rising inflationary pressures and risks of inflation becoming more broad-based. The committee, which met on October 5, 6 and 7, voted unanimously in favour of the rate decision. RBI Governor Sanjay Malhotra also announced that the standing deposit facility (SDF) rate under the liquidity adjustment facility (LAF) stands adjusted to 5.25 per cent, while the marginal standing facility (MSF) rate and the Bank Rate have been revised to 5.75 per cent. The MPC also decided to shifts stance to calibrated tightening.

Importantly, Governor said that the rate cuts are off the table in the near term, with future policy action likely to be either a rate hike or a pause, depending on evolving growth and inflation dynamics. The MPC, however, voted 4-2 to change its stance to calibrated tightening.

7 per cent earlier. 8 per cent in Q1 FY27. Growth was supported by resilient private consumption and strong investment activity, which increased by almost 12 per cent, while net exports also made a positive contribution.


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