RBI Monetary Policy Meeting October 2026 LIVE: Will Governor Sanjay Malhotra hike interest rate after 4 pauses?

The Reserve Bank of India's Monetary Policy Committee convened for its three-day bi-monthly review meeting in Mumbai on October 5th. Their decision will be announced today at 10 AM. Financial markets are on edge for possible interest rate hikes due to mounting global and domestic challenges. According to news agency PTI, a rate increase in the upcoming monetary policy would signify a shift in RBI's stance, following four consecutive rate cuts of a total 125 basis points in 2025 and a prolonged pause since then.

The last repo rate hike occurred in February 2023, when the RBI increased the rate by 25 basis points to 6.50 percent. However, Bank of Baroda Chief Economist Madan Sabnavis noted that the MPC might maintain the current repo rate and opt for further hikes in the upcoming December review, with a cumulative increase of 75 basis points.

The MPC's review comes amid heightened economic pressures from geopolitical instability and rising prices. Factors influencing the committee's decision include geopolitical tensions, escalating Consumer Price Index (CPI), and increasing domestic food price pressures. Conflicts in West Asia and soaring crude oil costs are exacerbating broader macroeconomic concerns, directly impacting the common man's daily expenses. Additionally, persistent food inflation has contributed to volatile retail price growth.