The Reserve Bank of India’s Monetary Policy Committee increased the policy repo rate by 25 basis points to 5.50% at its October 5–7 meeting and shifted its stance to calibrated tightening. The decision reflects concern about inflation pressures, but does not establish that another increase is certain.
What did the RBI decide?
The standing deposit facility rate was adjusted to 5.25%, while the marginal standing facility and Bank Rate became 5.75%. The RBI published the minutes of the October 5–7 meeting on October 21.
What does it mean for EMIs?
Borrowers with floating-rate loans linked to external benchmarks may see their borrowing costs change according to their lender’s reset schedule and loan agreement. Fixed-rate borrowers generally do not see an automatic immediate change to existing instalments. The actual EMI impact depends on the outstanding balance, tenure and rate adjustment.
Will rates rise again?
The RBI’s calibrated-tightening stance signals a cautious approach to inflation. Future decisions will depend on inflation and economic conditions, rather than being predetermined. The next scheduled MPC meeting is in December.
Source: Reserve Bank of India, Monetary Policy Statement, October 7, 2026. The meeting minutes published October 21 provide further detail on the committee’s deliberations. This is general information, not individual lending advice.
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