Two external members dissent on the shift to calibrated tightening in the Monetary Policy Committee minutes

22 October 2026

The Reserve Bank of India released the minutes of its Monetary Policy Committee meeting held from October 5 to 7, 2026 on October 21, 2026. The MPC voted unanimously to raise the repo rate by 25 basis points to 5.5 per cent, but external members Dr Nagesh Kumar and Prof Ram Singh dissented on the decision to shift the policy stance from neutral to calibrated tightening. Prof Ram Singh said he did not favour shifting the stance to tightening mode as it may signal an extended cycle of rate hikes. Governor Sanjay Malhotra said headline CPI inflation is projected to touch the upper tolerance band of 6 per cent in the third quarter and remain significantly above 5 per cent in the next two quarters. Members broadly acknowledged the risks from the West Asia conflict, rising oil prices and the spread of inflation beyond food and fuel.