📷 Image: Wikimedia Commons / Ministry of Finance of India
Business
RBI Hikes Repo Rate by 25 Basis Points to 6.50% After MPC Decision
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🗓 07 Oct 2026, 12:16 PM
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The Reserve Bank of India raised its key repo rate by 25 basis points to 6.50% following the Monetary Policy Committee's unanimous approval.
The Reserve Bank of India (RBI) increased its benchmark repo rate by 25 basis points, bringing the rate to 6.50%. The decision was announced by Governor Shaktikanta Das during a live session following the Monetary Policy Committee (MPC) meeting.
The MPC, comprising seven members, voted unanimously in favour of the hike. The committee cited persistent inflationary pressures and the need to keep monetary policy tight as key reasons for the move.
Governor Das highlighted that the rate hike would help anchor inflation expectations and support the RBI’s inflation targeting framework. He also noted that the decision aligns with the committee’s assessment of the economic outlook.
The hike is expected to raise borrowing costs for banks and could influence loan rates for businesses and consumers. Market analysts anticipate a modest impact on credit demand, while the RBI aims to maintain price stability amid a recovering economy.
The MPC, comprising seven members, voted unanimously in favour of the hike. The committee cited persistent inflationary pressures and the need to keep monetary policy tight as key reasons for the move.
Governor Das highlighted that the rate hike would help anchor inflation expectations and support the RBI’s inflation targeting framework. He also noted that the decision aligns with the committee’s assessment of the economic outlook.
The hike is expected to raise borrowing costs for banks and could influence loan rates for businesses and consumers. Market analysts anticipate a modest impact on credit demand, while the RBI aims to maintain price stability amid a recovering economy.