The Reserve Bank of India (RBI) is set to announce the outcome of its October monetary policy review on Wednesday, October 7, 2026 with the decision on interest rates and the central bank’s policy stance likely to remain in focus for markets and the wider economy.
RBI Governor Sanjay Malhotra will announce the Monetary Policy Committee’s (MPC) decision at 10 am, followed by a post-policy press conference at noon.
When is the RBI MPC meeting?
The six-member MPC is meeting from October 5 to October 7 as part of the RBI’s bi-monthly monetary policy review.
During the meeting, the committee will assess economic growth, inflation and other macroeconomic developments before deciding on the policy repo rate and its monetary policy stance.
What are markets expecting?
Expectations ahead of the meeting are mixed, with a Business Standard poll indicating that a majority of economists expect the RBI to raise the policy repo rate.
Eight out of 10 respondents surveyed by Business Standard expect a 25-basis-point (bps) rate hike in the October meeting.
If delivered, it would mark the first repo rate increase since February 2023, when the RBI raised the rate by 25 bps to 6.5%
The repo rate has remained unchanged at 5.25% through the RBI’s last four policy reviews. This followed cumulative rate cuts of 125 bps during 2025.
What happened in the August policy meeting?
At its August meeting, the RBI kept the repo rate unchanged at 5.25% and retained its monetary policy stance at ‘neutral’.
The Standing Deposit Facility (SDF) rate was maintained at 5%, while the Marginal Standing Facility (MSF) rate and bank rate remained at 5.5%
At the time, the RBI highlighted continued support from domestic demand, manufacturing and services activity, as well as exports. The central bank also said underlying inflation had remained under control.
The RBI had projected real GDP growth for FY27 at 6.7% with quarterly growth projections of 7% for Q1, 6.4% for Q2, 6.5% for Q3 and 6.8% for Q4.
Why is the October decision important?
The policy decision comes as markets assess the balance between economic growth, inflation, and interest rates.
Along with the repo rate decision, investors will also be watching the RBI’s commentary and updated assessment of economic conditions for clues on the direction of monetary policy.
For borrowers, banks, businesses, and investors, changes in the policy rate can influence borrowing costs, liquidity, and financial-market conditions. The RBI’s guidance on inflation and growth will therefore be closely watched alongside the headline rate decision.
Source: Livemint
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