RBI Hikes Repo Rate To 5.50%, First Increase Since February 2023

The Reserve Bank of India’s Monetary Policy Committee raised the repo rate by 25 basis points to 5.50% on October 7, 2026, its first rate hike since February 2023, in a unanimous vote. The policy stance also shifted from “neutral” to “calibrated tightening,” signalling the RBI intends to rule out near-term rate cuts.

Alongside the corridor rates — the Standing Deposit Facility (SDF) at 5.25% and the Marginal Standing Facility (MSF) and Bank Rate both at 5.75% — the RBI also raised its FY2026-27 real GDP growth forecast to 7.1% and its CPI inflation projection to 5.2%.

For borrowers, since most floating-rate home and personal loans in India are now linked to the repo rate, this hike is likely to translate into higher EMIs or longer tenures fairly quickly. The next MPC meeting is scheduled for December 2-4, 2026.