📷 Image: Wikimedia Commons / Wikimedia Commons
Business
RBI raises policy repo rate by 25 basis points, matching market expectations
✍️ Tripuratimes
🗓 08 Oct 2026, 12:47 PM
👁 12
The Reserve Bank of India increased its policy repo rate by 25 basis points, a move that aligned with analysts’ forecasts.
The Reserve Bank of India announced a 25‑basis‑point hike in its policy repo rate during its latest monetary‑policy meeting. The decision was widely anticipated by market participants and aligns with the forecasts of most analysts.
By raising the repo rate, the central bank aims to temper inflationary pressures while keeping growth prospects in view. The incremental increase is expected to translate into marginally higher borrowing costs for banks, which will pass on the change to corporate and retail borrowers.
Economists note that the move reflects the RBI’s continued focus on achieving its medium‑term inflation target of 4 percent, while signalling that further tightening may be considered if price pressures persist.
By raising the repo rate, the central bank aims to temper inflationary pressures while keeping growth prospects in view. The incremental increase is expected to translate into marginally higher borrowing costs for banks, which will pass on the change to corporate and retail borrowers.
Economists note that the move reflects the RBI’s continued focus on achieving its medium‑term inflation target of 4 percent, while signalling that further tightening may be considered if price pressures persist.