Economy
RBI Raises Repo Rate to 5.5%, Shifts to Calibrated Tightening
RBI’s MPC unanimously raised the repo rate by 25 basis points to 5.50% and shifted to calibrated tightening.
What happened
The Monetary Policy Committee met from October 5 to 7, 2026, and unanimously increased the policy repo rate by 25 basis points to 5.50%. The standing deposit facility rate is now 5.25%, while the marginal standing facility and Bank Rate stand at 5.75%. The MPC also changed its policy stance to calibrated tightening.
Why it matters
A higher policy rate raises the benchmark for borrowing costs and marks a clear shift toward tighter monetary conditions for businesses and households.
Source: RBI