The Reserve Bank of India’s Monetary Policy Committee (MPC) has changed its policy stance to calibrated tightening, with four members voting in favour and two against.
\n\nThe stance change comes alongside a unanimous 25-basis-point repo rate hike to 5.50%.
\n\nThe Reserve Bank of India (RBI) has raised the repo rate by 25 basis points, with the decision taken unanimously by the Monetary Policy Committee (MPC).
\n\nThe repo rate now stands at 5.50%, up from 5.25%.
\n\nMonetary Policy Statement by Shri Sanjay Malhotra, Governor, RBI – October 7, 2026 https://t.co/ppHzJigh1K
\n\n— ReserveBankOfIndia (@RBI) October 7, 2026
\n\nThe RBI may raise the repo rate in October amid pressure on the rupee and narrowing India-US yield differentials, according to Sandeep Yadav, Executive Director and Head of Fixed Income, DSP Mutual Fund.
\n\nYadav said the fund had earlier not expected a rate hike, but the escalation in the Iran conflict, crude oil rising to around $100 a barrel, higher US rate expectations and hawkish RBI MPC minutes have changed the outlook.
\n\nHe said currency pressures, rather than inflation, are likely to be the key reason for a rate hike. Yadav noted that narrowing yield differentials are making it harder for India to attract foreign…
Original source: https://www.cnbctv18.com/entertainment/
