RBI Hikes Benchmark Repo Rate To 5.5% After Four Years

7 Oct 2026, 12:38 pm · 17h ago · 1 min read · YourStory

The Reserve Bank of India has raised its benchmark repo rate by 25 basis points to 5.50%, marking its first interest rate hike in nearly four years. The Monetary Policy Committee voted unanimously to increase the rate and shifted its stance toward calibrated tightening to counter rising inflation and currency depreciation. RBI Governor Sanjay Malhotra ruled out near-term rate cuts, pointing to elevated consumer-price inflation at 4.82% in August alongside persistent core inflation. The central bank's tightening response reflects broader macroeconomic pressures fueled by global crude oil volatility and irregular monsoon patterns.