Current Affairs - Economy - Discussion

The Reserve Bank of India’s Monetary Policy Committee increased the policy repo rate by 25 basis points in its October 2026 meeting, taking the repo rate to 5.50%. The decision was taken during the 63rd MPC meeting held from 5 to 7 October 2026 under RBI Governor Sanjay Malhotra. A basis point is equal to one-hundredth of a percentage point, so a 25-bps increase represents a rise of 0.25 percentage points. The MPC cited strengthened inflationary pressures, including higher food and fuel prices, as an important reason for the rate hike. The policy stance was also changed to “calibrated tightening.”