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RBI May Increase Rates by 0.25 Pc in Oct Policy Amid Inflationary Pressures, Experts Poll Shows
The six-member panel signaled more tightening as inflation stayed above target and growth remained resilient, with 35 of 61 Reuters economists expecting the hike.
- On Wednesday, October 7, 2026, the Reserve Bank of India raised its benchmark repo rate by 25 basis points to 5.50%, marking the first increase since early 2023 to combat accelerating inflation.
- Escalating retail inflation, which hit 4.82% in August, and crude oil prices persistently above $100 per barrel prompted the central bank's decision as price pressures broadened across food and energy sectors.
- Economists polled by the Economic Times anticipated the hike, with central bank data revealing that 'around 19% of the 358 items in the CPI basket' recorded inflation above 6% in August, up from 13% in March.
- Equated monthly instalments on loans are expected to rise as banks pass on higher borrowing costs, immediately impacting home, personal and vehicle loan borrowers following the rate increase.
- RBI Governor Sanjay Malhotra noted that future policy actions will remain contingent on evolving macroeconomic conditions, as policymakers adopted a 'calibrated tightening' stance signaling openness to additional rate increases if needed.
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The central bank responded to inflationary pressures with a rise of 25 basis points, the first since 2023
·Milan, Italy
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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 …
·India
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Coverage Details
Total News Sources95
Leaning Left7Leaning Right13Center10Last UpdatedBias Distribution44% Right
Bias Distribution
- 44% of the sources lean Right
44% Right
L 23%
C 33%
R 44%
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