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

On October 5, the Reserve Bank of India's Monetary Policy Committee commenced a three-day bi-monthly review meeting in Mumbai. RBI Governor Sanjay Malhotra will reveal the committee's decisions following the meeting at 10 AM. Financial markets are anticipating a potential interest rate hike as the central bank grapples with international and domestic challenges.

The prospect of a rate increase would represent a reversal after four consecutive cuts totaling 125 basis points in 2025 and a period of inaction. 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 suggested that the MPC might maintain the repo rate unchanged and potentially hike rates in the upcoming December policy review, bringing a total increase of 75 basis points.

The meeting is significant as it addresses mounting global and domestic headwinds. Key factors influencing the committee's decision-making include geopolitical instability, rising Consumer Price Index (CPI), and increasing domestic food prices. Geopolitical tensions, higher crude oil costs, and persistent food inflation are contributing to macroeconomic concerns that directly impact consumers' daily lives.