The Reserve Bank of India has taken a key decision in the wake of global economic challenges and crude oil prices crossing $100 per barrel in international markets. The three-day Monetary Policy Committee (MPC) meeting chaired by RBI Governor Sanjay Malhotra decided to increase the repo rate by 25 basis points. With this, the repo rate has reached 5.50 percent. Domestic CPI-based inflation reached 4.82 per cent in August and El Nino-induced uncertainty over rabi yields has made a hike in interest rates inevitable, say experts. A report by SBI Research has predicted that the repo rate is likely to be hiked to 6 percent by December. Also, RBI has revised the GDP growth forecast for the financial year 2027 to 7.Revised to 1 percent.
For more information on this article, please refer to Page Number 1 & 2, Abhyudayam E-paper dated 08-10-2026.
