RBI Raises Repo Rate for the First Time in Nearly Four Years

On 7 October 2026, the Reserve Bank of India’s Monetary Policy Committee unanimously raised the policy repo rate by 25 basis points to 5.50%, the first increase in nearly four years. The committee also shifted its policy stance to “calibrated tightening” as it responded to broader inflation pressures, high energy costs, a weak monsoon and strong domestic growth. The decision marked the end of India’s extended pause in interest-rate increases and aligned monetary policy more closely with a renewed global tightening cycle. It became the latest event in the timeline’s 2026 cutoff.