A new rate game begins. What’s inside the RBI’s new playbook?
- Posted on October 7, 2026
- By Business News Today
- 1 Views
- 1 min read
In brief
India's monetary authority adopts a more aggressive stance on inflation control, elevating the repo rate to 5.5% in its October policy review. Governor Sanjay Malhotra signals heightened vigilance against emerging price pressures stemming from volatile crude oil markets and elevated food costs. Despite robust economic expansion forecasted at 7.1% for FY27 and vigorous credit expansion, the central bank identifies window of opportunity to preempt inflationary spillovers before broader market disruptions materialize.
Summary auto-generated by AI from the original publisher's content. Editorial standards.
A new rate game begins. What’s inside the RBI’s new playbook?
RBI rate hike in October monetary policy marks a sharp shift to calibrated tightening, raising the repo rate to 5.5%. RBI Governor Sanjay Malhotra is prioritising inflation risks as crude oil, food prices and inflation expectations rise. Strong FY27 GDP growth at 7.1%, rapid credit growth and tighter liquidity give RBI room to act before supply shocks spread across markets.
