{
  "id": 12746801,
  "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",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-08T00:00:00.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/forex/forex-news/rbi-raises-repo-rate-to-5-5-in-first-hike-under-governor-sanjay-malhotra-shifts-stance-to-calibrated-tightening/articleshow/134777167.cms"
  },
  "original_language": "en",
  "account": "The Reserve Bank of India (RBI) unexpectedly increased its key interest rate to 5.5% on Wednesday, marking the first hike since February 2023. This move, which signals a shift toward \"calibrated tightening,\" came as four of the Monetary Policy Committee's six members voted to adjust the policy stance from neutral to calibrated tightening. Despite the rate increase, the Monetary Policy Committee raised its growth forecast for fiscal year 2027 (FY27) by 40 basis points to 7.1%. This is the first rate hike under Governor Sanjay Malhotra's tenure, following a series of 125 basis point reductions and a 100 basis point cut in the cash reserve ratio (CRR) since he assumed office in December 2024. The governor stated that rate cuts are off the table in the near term, with policy action limited to hikes or pauses, depending on evolving conditions. The RBI's move follows similar actions by major global central banks, such as the US Federal Reserve and the European Central Bank, who raised their policy rates by 25 basis points in mid-September to curb inflation. Additionally, Japan increased its rates to tame yields that had reached three-decade highs. The benchmark 10-year bond yield rose to a near three-year high of 7.24%, while the rupee slipped to 96.84 per dollar, nearing its record low of 96.96 reached on May 20. Responding to queries, Malhotra suggested the rupee might be undervalued and characterized 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": [],
  "editors_take": null,
  "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 - Economy",
        "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",
        "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."
}