{
  "id": 16024990,
  "title": "RBI MPC Minutes Signal More Repo Rate Hikes, Economists Expect 50 Bps Increase In December Amid Rising Inflation Risks",
  "url": "https://urgent.news/2026/10/22/rbi-mpc-minutes-signal-more-repo-rate-hikes-economists-expect-50-bps",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-22T08:43:39.000Z",
  "source": {
    "name": "Free Press Journal",
    "slug": "free-press-journal",
    "url": "https://www.freepressjournal.in/business/rbi-mpc-minutes-signal-more-repo-rate-hikes-economists-expect-50-bps-increase-in-december-amid-rising-inflation-risks"
  },
  "original_language": "en",
  "account": "The Reserve Bank of India's Monetary Policy Committee (MPC) minutes from October have signaled the central bank's intention to continue raising interest rates in December, according to economists' expectations. Inflation concerns have prompted a shift towards tighter monetary policy, with the RBI having already increased the repo rate by 25 basis points during their October meeting. The MPC signaled a calibrated tightening of policy, indicating their caution over emerging inflationary pressures. SBI Research predicts a potential 50 basis point (bps) increase in the repo rate during December, which could be achieved through a direct hike or adjustments to the Liquidity Adjustment Facility (LAF) corridor. Dr Soumya Kanti Ghosh, SBI's Group Chief Economic Adviser, emphasized the need to monitor rising inflation and persistent rupee weakness. The MPC's minutes suggest a clear shift towards tighter monetary conditions, with strong economic growth and widening inflationary pressures cited as reasons for the potential interest rate hike. RBI Governor Sanjay Malhotra highlighted concerns over inflation spreading across various sectors, noting that inflation may approach 6 percent during the October-December quarter. Economists believe that another repo rate hike remains a possibility in December. Despite the RBI's failed auction of Yes Bank AT1 bonds, the Indian rupee has strengthened against the US dollar this month, aided by foreign exchange regulations and inflows from Initial Public Offerings (IPOs). However, elevated crude oil prices and global uncertainty continue to pose challenges for bond markets, with economists anticipating elevated bond yields as investors assess inflation risks, monetary policy decisions, and developments in global oil markets.",
  "summary": "Mumbai: Economists expect the Reserve Bank of India (RBI) to continue raising interest rates in December after the October Monetary Policy Committee (MPC) minutes revealed growing concerns over inflation and a shift towards tighter monetary policy. The RBI had increased the repo rate by 25 basis points during its October meeting and changed its policy stance to 'calibrated tightening', signalling…",
  "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."
}