{
  "id": 12549010,
  "title": "India's central bank hikes interest rate to 5.5pc",
  "url": "https://urgent.news/2026/10/07/indias-central-bank-hikes-interest-rate-to-5-5pc",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-07T04:58:56.000Z",
  "source": {
    "name": "RTHK News - Finance",
    "slug": "rthk-news-finance",
    "url": "https://news.rthk.hk/rthk/en/component/k2/1872991-20261007.htm"
  },
  "original_language": "en",
  "account": "On Wednesday, India's central bank increased its benchmark repo rate by 25 basis points to 5.5 percent, the first hike in nearly four years, according to <source>. This move was prompted by rising inflation and robust economic growth, as reported by Reuters. The central bank's decision to raise rates comes amid the impact of higher oil prices, driven by the Iran war, which is fueling inflation and reducing purchasing power, affecting currencies. Additionally, weak monsoon rains due to El Niño have exacerbated price pressures in India's third-largest economy, as stated by the six-member rate panel that unanimously voted for the hike. Governor Sanjay Malhotra indicated in his policy address that the outlook for inflation was no longer benign. Approximately 60 percent of economists in a Reuters poll had anticipated a 25 basis point increase in the repo rate. In August, consumer inflation accelerated to 4.82 percent, surpassing the Reserve Bank of India's four percent medium-term target for the third consecutive month. The rise in fuel and food prices is now influencing the entire economy, with nearly half of the consumer basket experiencing inflation exceeding four percent. Meanwhile, economic growth remains robust, with the GDP growth for the April-June quarter at 7.8 percent, significantly higher than the central bank's forecast of seven percent.",
  "summary": "The Indian central bank raised its benchmark repo rate by 25 basis points to 5.5 percent on Wednesday, marking the first rise in nearly four years amid mounting inflation and strong economic growth. India has joined major central banks in raising rates as higher oil prices triggered by the Iran war fuel inflation, squeeze purchasing power and weigh on currencies. Weak monsoon rains linked to El…",
  "key_points": [
    "India's central bank raises benchmark repo rate to 5.5%.",
    "Hike of 25 basis points comes amid rising inflation and economic growth.",
    "Weak monsoon rains exacerbate price pressures in India's economy."
  ],
  "editors_take": "India's central bank rate hike signals a shift in policy stance to combat rising inflation, amid robust economic growth and higher oil prices, affecting the economy's purchasing power.",
  "illustration": "https://urgent.news/ill/12549010.png",
  "coverage": {
    "outlets": 5,
    "also_reported_by": [
      {
        "outlet": "Nikkei Asia",
        "title": "India's central bank delivers first rate hike since 2023 as inflation bites",
        "url": "https://urgent.news/2026/10/07/indias-central-bank-delivers-first-rate-hike-since-2023-as-inflation",
        "published": "2026-10-07T02:40:18.000Z"
      },
      {
        "outlet": "CNBC",
        "title": "India’s central bank hikes rates for the first time since 2023 as inflation risks build",
        "url": "https://urgent.news/2026/10/07/indias-central-bank-hikes-rates-for-the-first-time-since-2023-as",
        "published": "2026-10-07T04:44:58.000Z"
      },
      {
        "outlet": "Free Malaysia Today",
        "title": "India’s central bank hikes rates for first time in more than 3 years",
        "url": "https://urgent.news/2026/10/07/indias-central-bank-hikes-rates-for-first-time-in-more-than-3-years",
        "published": "2026-10-07T05:43:00.000Z"
      },
      {
        "outlet": "Bloomberg",
        "title": "India's Central Bank Hikes Repo Rate By 25 Bps",
        "url": "https://urgent.news/2026/10/07/indias-central-bank-hikes-repo-rate-by-25-bps",
        "published": "2026-10-07T05:44:03.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}