Reserve Bank raises the policy repo rate to 5.50 per cent and moves to calibrated tightening

National Monetary policy Economy & Banking

Reserve Bank raises the policy repo rate to 5.50 per cent and moves to calibrated tightening

21 October 2026

The Monetary Policy Committee of the Reserve Bank of India raised the policy repo rate by 25 basis points to 5.50 per cent at its 63rd meeting, held from 5 to 7 October 2026 and chaired by Governor Shri Sanjay Malhotra. The Standing Deposit Facility rate stands at 5.25 per cent and the Marginal Standing Facility rate and the Bank Rate at 5.75 per cent each. The Committee changed its stance to calibrated tightening. Dr. Nagesh Kumar and Prof. Ram Singh voted to retain the stance at neutral. The Committee projected real GDP growth of 7.1 per cent and CPI inflation of 5.2 per cent for 2026-27, with core inflation at 4.4 per cent. The minutes of the meeting were released on 21 October 2026 and the next meeting is set for 2 to 4 December 2026.

Policy repo rate: 5.50 per cent Rate change: 25 basis points Stance: Calibrated tightening CPI inflation projection 2026-27: 5.2 per cent Real GDP growth projection 2026-27: 7.1 per cent

Why it matters for exams: The repo rate and the policy stance are standard one-mark questions in every banking and economy section.

Kerala PSCUPSC

21 October 2026 Source: Reserve Bank of India

In plain words

MPC Monetary Policy Committee — The six-member committee that fixes the policy repo rate under the Reserve Bank of India Act.

SDF Standing Deposit Facility — The window through which banks park surplus funds with the Reserve Bank without collateral.