RBI MPC minutes: 6-0 vote for 25 bps repo hike to 5.50%
Why in the news
On 21 October 2026 the Reserve Bank of India published the minutes of its Monetary Policy Committee meeting held from 5 to 7 October 2026, which raised the policy rate and tightened the stance.
Key facts
- Repo rate: increased by 25 basis points to 5.50%; all six members voted in favour.
- Stance: changed from neutral to calibrated tightening. Four members backed the change, while external members Nagesh Kumar and Ram Singh wanted the neutral stance retained.
- Core inflation for FY2026-27 is projected at 4.4%; August 2026 CPI inflation stood at 4.8%.
- Q1 FY2026-27 GDP growth came in at 7.8%.
- The next meeting will be held on 2-4 December 2026.
| Instrument | Rate |
|---|---|
| Repo rate | 5.50% |
| Standing Deposit Facility | 5.25% |
| Marginal Standing Facility | 5.75% |
| Bank Rate | 5.75% |
| FY2026-27 projection | Full year | Q2 | Q3 | Q4 |
|---|---|---|---|---|
| Real GDP growth | 7.1% | 7.2% | 6.9% | 6.8% |
| CPI inflation | 5.2% | 4.9% | 6.0% | 5.7% |
About the MPC
The six-member committee is chaired by RBI Governor Sanjay Malhotra. Its other members are Poonam Gupta and Indranil Bhattacharyya from the RBI, and external members Nagesh Kumar, Saugata Bhattacharya and Ram Singh. The October 2026 sitting was its 63rd meeting.
Exam angle
- Remember the corridor: SDF 25 bps below repo, MSF and Bank Rate 25 bps above.
- Note the split: unanimous on the rate, 4-2 on the stance.
- Q3 FY2026-27 inflation projection (6.0%) is the highest quarterly figure.