RBI May Increase Rates by 0.25 Pc in Oct Policy Amid Inflationary Pressures, Experts Poll Shows
The six-member panel voted unanimously as retail inflation stayed above the 4% target for a third straight month.
- On Wednesday, the Reserve Bank of India Monetary Policy Committee unanimously raised its benchmark repo rate by 25 basis points to 5.50%, shifting its policy stance to calibrated tightening from neutral.
- Escalating inflation risks, fueled by rising crude oil prices due to the West Asia conflict, combined with weak monsoon rains, prompted the central bank's decision after nearly two years of monetary accommodation.
- While India's GDP grew 7.8% in the first quarter of FY27, the MPC raised its inflation forecast to 5.2% for the fiscal year from 5% previously, citing broad-based price pressures.
- Borrowing costs for home, personal, and vehicle loans are expected to rise as banks pass on increased funding costs; savers may see higher deposit rates as lenders adjust their rates.
- RBI Governor Sanjay Malhotra noted that "the policy action ahead can only be a rate hike or pause, depending on the evolving conditions," signaling potential further tightening aligned with global central banks.
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71 Articles
Indian central bank hikes rates for first time in more than 3 years
The Reserve Bank of India (RBI) said the benchmark repurchase rate, the level at which it lends to commercial banks, would be raised by 25 basis points to 5.50 percent after a unanimous vote by a six-member panel. In doing so, the RBI shifted gears to join several central banks around the world who have raised rates to curb price rises or boost their currencies. Since the outbreak of the Iran war in February, the RBI has stood pat as it waited …
India Raises Repo Rate 25 bps to 5.5% in First Hike in Nearly Four Years Amid Rising Inflation
MUMBAI: The Indian central bank raised its benchmark repo rate by 25 basis points to 5.5% on Wednesday, marking the first rise in nearly four years amid mounting inflation and strong economic growth.India has joined major central banks in raising rates as higher oil prices triggered by the Iran war fuel inflation, squeeze purchasing power and weigh on currencies. Weak monsoon rains linked to El Niño have compounded price pressures in Asia's t…
RBI Hikes Policy Repo Rate by 25 Basis Point to 5.5%
RBI Hikes Policy Repo Rate by 25 Basis Point to 5.5%. Monetary Policy Committee (MPC) hikes repo rate by 25 basis points to 5.5 pc: RBI Governor Sanjay Malhotra. Monetary Policy Committee unanimously decided in favour of hike in policy interest
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