Indian Central Bank Hikes Rates for First Time in More than 3 Years
A PTI poll of 16 economists and bankers sees a shift to tighter policy as inflation stays above the RBI’s 4% target.
- On Wednesday, October 7, 2026, the Reserve Bank of India's Monetary Policy Committee unanimously raised the benchmark repo rate by 25 basis points to 5.50%, marking the first hike since February 2023.
- Rising retail inflation reached 4.82% in August, the third consecutive month above the Reserve Bank's 4% target, while crude oil prices surged above $100 a barrel amid West Asia tensions.
- India's economy grew 7.8% in the June quarter, giving policymakers room to prioritize inflation control. Price pressures broadened to about 37% of the Consumer Price Index basket in August.
- Borrowers face higher costs for home, car, and education loans as banks pass on the rate increase. Governor Sanjay Malhotra said rate cuts are "off the table in the near term."
- Markets price in additional tightening ahead as economists anticipate further rate increases in coming months. The central bank aims to contain inflation while balancing growth risks from global headwinds.
105 Articles
105 Articles
The Indian central bank is expected to raise its interest rates this Wednesday, for the first time in almost four years. A decision that comes as inflation rises, oil is traded around $100 per barrel and rupee is close to its lowest historical level against the dollar. At the same time, foreign investors are reducing their exposure to Indian assets.
The Reserve Bank of India (RBI) has raised interest rates for the first time since 2023, raising the repo rate, the key interest rate, by 25 basis points to 5.50 percent, a one-year high, CNBC reports. The move is aimed at curbing increasingly stubborn inflation, while the Indian economy continues to expand at a remarkable pace.
The central bank responded to inflationary pressures with a rise of 25 basis points, the first since 2023
India Economy: RBI Raises Repo Rate to 5.50% After 3.5 Years, Loans and EMIs May Get Costlier
<p class="PDq2pG_selectionAnchorContainer" dir="auto" data-start="157" data-end="575">The Reserve Bank of India has delivered a major decision on interest rates, raising the repo rate by 25 basis points to 5.50%. This marks the first repo rate hike since February 2023, after a gap of nearly three and a half years. The decision could have a direct impact on borrowing costs, with home loans, car loans, education loans and other bank-linked credit …
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