{
  "id": 12807911,
  "title": "RBI Turns Hawkish Amid Inflation Risks, Hikes Repo Rate To 5.50% As FY27 Growth Forecast Rises To 7.1%",
  "url": "https://urgent.news/2026/10/08/rbi-turns-hawkish-amid-inflation-risks-hikes-repo-rate-to-5-50-as",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-08T05:57:44.000Z",
  "source": {
    "name": "Free Press Journal",
    "slug": "free-press-journal",
    "url": "https://www.freepressjournal.in/business/rbi-turns-hawkish-amid-inflation-risks-hikes-repo-rate-to-550-as-fy27-growth-forecast-rises-to-71"
  },
  "original_language": "en",
  "account": "The Reserve Bank of India (RBI) took a hawkish stance amidst inflation concerns on Wednesday, raising the repo rate by 25 basis points to 5.50%, marking its first increase since February 2023. Despite the hike, the central bank upgraded the growth forecast for the fiscal year 2027 (FY27) from 6.7% to 7.1%. The Monetary Policy Committee, consisting of six members, unanimously approved the rate hike, shifting from a \"neutral\" to a \"calibrated tightening\" approach. Governor Sanjay Malhotra stated that near-term cuts were off the table, with future adjustments limited to either hikes or pauses. The inflation outlook has become less benign, with headline inflation projected to average nearly 5.8% over the next three quarters, and core inflation at 4.4%. In addition to high prices, the concern is the wide spread of rising prices across various goods and services. The increase in the repo rate can impact borrowers, savers, and businesses, as well as the Indian rupee, bonds, and deposits. The RBI is also introducing new financial mechanisms to enhance financial integration and transparency. The monetary policy landscape has shifted significantly since 2014, with the repo rate fluctuating over time in response to inflationary pressures and economic growth.",
  "summary": "Mumbai: India entered a new monetary phase on Wednesday: growth gathered pace, but money became dearer. RBI raised the repo rate by 25 basis points, from 5.25% to 5.50%, its first hike since February 2023, ending more than three-and-a-half years without an increase. Yet it upgraded FY27 real GDP growth from 6.7% to 7.1%. The six-member Monetary Policy Committee unanimously backed the hike,…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "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."
}