{
  "id": 12740294,
  "title": "RBI raises repo rate to 5.5% in first hike under Governor Sanjay Malhotra, shifts stance to ‘calibrated tightening’",
  "url": "https://urgent.news/2026/10/08/rbi-raises-repo-rate-to-5-5-in-first-hike-under-governor-sanjay",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-08T00:00:00.000Z",
  "source": {
    "name": "The Economic Times - Economy",
    "slug": "the-economic-times-economy",
    "url": "https://economictimes.indiatimes.com/news/economy/policy/rbi-raises-repo-rate-to-5-5-in-first-hike-under-governor-sanjay-malhotra-shifts-stance-to-calibrated-tightening/articleshow/134773772.cms"
  },
  "original_language": "en",
  "account": "On Wednesday, the Reserve Bank of India (RBI) unexpectedly increased its benchmark repo rate to 5.5%, marking the first hike since February 2023, in line with global central banks tightening monetary policy due to rising bond yields and potential inflationary transport fuel costs. The Monetary Policy Committee (MPC) also indicated a possibility of further rate hikes, with four out of six members voting for a shift from neutral to \"calibrated tightening.\" This marks the first rate increase under the watch of Governor Sanjay Malhotra, following 125 basis points of reductions and a 100-basis point cut in cash reserve ratio (CRR) since he assumed office in December 2024. In his policy statement, Malhotra noted that rate cuts are off the table for the near term, and policy action can only involve hikes or pauses based on evolving conditions. The MPC also raised FY27 growth forecast by 40 basis points to 7.1%, aligning with the latest World Bank assessment. Although bond yields climbed to a near three-year high and the rupee weakened to near-record lows, Malhotra suggested the rupee might be undervalued, and referred to short-term financial market behavior as irrational.",
  "summary": "The RBI raised its benchmark repo rate by 25 basis points to 5.5%, its first hike since February 2023, and shifted its policy stance to ‘calibrated tightening’. The move came as the central bank raised its FY27 growth forecast to 7.1% while warning that inflation and its outlook were no longer benign.",
  "key_points": [
    "RBI raises repo rate to 5.5%, first hike since February 2023",
    "Monetary Policy Committee considers further rate hikes",
    "Governor Sanjay Malhotra marks first rate increase under his watch"
  ],
  "editors_take": "The RBI's rate hike and shift to calibrated tightening signal a pivot towards curbing inflation, marking a departure from the accommodative stance adopted under Governor Sanjay Malhotra's predecessor.",
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "Times of India",
        "title": "Loans set to get dearer as RBI hikes repo rate after 44 months",
        "url": "https://urgent.news/2026/10/07/loans-set-to-get-dearer-as-rbi-hikes-repo-rate-after-44-months",
        "published": "2026-10-07T21:21:11.000Z"
      },
      {
        "outlet": "The Economic Times - Top News",
        "title": "RBI raises repo rate to 5.5% in first hike under Governor Sanjay Malhotra, shifts stance to ‘calibrated tightening’",
        "url": "https://urgent.news/2026/10/08/rbi-raises-repo-rate-to-5-5-in-first-hike-under-governor-sanjay-12746801",
        "published": "2026-10-08T00:00:00.000Z"
      }
    ]
  },
  "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."
}