Representative image; not a photograph of the RBI Monetary Policy Committee meeting. Photo by Bia Limova on Pexels under the Pexels License.
Published: October 5, 2026. The Reserve Bank of India’s Monetary Policy Committee began its three-day October meeting on Monday, with the policy decision due on October 7. Attention is centred on whether policymakers will raise the repo rate from 5.25% as inflation pressures broaden and the rupee remains under strain.
Key points
- The RBI Monetary Policy Committee is meeting from October 5 to October 7, with its decision expected on Wednesday.
- A Reuters poll found a majority of economists expected a 25-basis-point increase, but the final decision remains with the MPC.
- Borrowing costs, deposit rates, inflation guidance and the rupee could all react to the policy decision and accompanying commentary.
Why expectations have shifted
Reuters reported that nearly 60% of economists in its poll expected a quarter-point increase. The case for tighter policy has strengthened as consumer inflation has remained above the RBI’s 4% target for several months, while higher crude-oil prices and global interest-rate moves have added pressure. The rupee’s weakness also keeps imported inflation and capital flows in focus.
That expectation is not the same as a confirmed rate move. Monetary policy decisions depend on the committee’s assessment of inflation, growth, liquidity and financial conditions at the meeting. Business Standard and other Indian financial outlets confirm the October 5–7 meeting window and the October 7 decision date.
What borrowers and savers should watch
If the repo rate rises, banks may eventually pass some of the increase into lending rates, potentially affecting floating-rate home, vehicle and business loans. Deposit rates can also move higher, although transmission is neither automatic nor uniform across banks and products.
Why it matters
The October decision will help clarify whether the RBI sees the current inflation pressure as temporary or persistent enough to require a tightening cycle. The central bank’s forecasts and language may therefore matter as much as the headline rate decision for households, businesses and markets.
Sources: Reuters; Business Standard; The Economic Times.
Read more Business coverage from Taaza Khabar.
AI-assisted editorial disclosure: This article was drafted with AI assistance and checked against Reuters and current Indian financial reporting.
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