RBI raises the policy repo rate by 25 basis points to 5.50 per cent and changes stance to calibrated tightening
7 October 2026
The Monetary Policy Committee held its 63rd meeting from October 5 to 7, 2026 under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India.
The MPC voted unanimously to increase the policy repo rate under the liquidity adjustment facility by 25 bps to 5.50 per cent.
Consequently the standing deposit facility rate stands adjusted at 5.25 per cent, and the marginal standing facility rate and the Bank Rate at 5.75 per cent.
The MPC also decided to change the stance to calibrated tightening.
Two members, Dr. Nagesh Kumar and Prof. Ram Singh, were of the view that the stance be retained at neutral.
The minutes of the meeting are to be published on October 21, 2026, and the next meeting is scheduled for December 2 to 4, 2026.
In plain words
MPC Monetary Policy Committee — The six-member statutory committee that fixes the policy repo rate, chaired by the RBI Governor.
LAF Liquidity Adjustment Facility — The window through which the RBI lends to and absorbs funds from banks on a short-term basis.
SDF Standing Deposit Facility — The floor of the LAF corridor, at which banks park surplus funds with the RBI without collateral.
MSF Marginal Standing Facility — The ceiling of the LAF corridor, at which banks borrow overnight from the RBI against approved securities.