India · Reserve Bank of India

India: policy repo rate 5.50%

Reserve Bank of India · Policy repo rate

5.50%
+25 bpsfrom 5.25%

The RBI raised the policy repo rate by 25 bps to 5.50% on 7 Oct 2026, its first hike since February 2023, after ten months unchanged at 5.25%.

Decided
7 Oct 2026Effective today
Vote
6–0Unanimous
Stance
Calibrated tighteningWas neutral
Next decision
4 Dec 202610:00 IST · in 58 days
A year ago5.50%
5-year high6.50%
5-year low4.00%
81 official sources · release 6b9bdc02c553Read the resolution

How high it is

Lower than on 72% of days since 2004

Days at each level since 2004. Today’s level is in colour.

Where in the cycle

Tightening, +25 bps so far

Five earlier tightening cycles ran a median +250 bps over 9 months.

Against the Fed

+150 bps above the Fed, narrower than on 85% of days since 2004

A year ago the gap was +125 bps.

Among 7 central banks

The 2nd highest policy rate of the seven

Above the RBA, Fed, BoE, ECB and BoC.

What it means for a loan

On a ₹50 lakh loan over 20 years, this hike adds about ₹794 a month

₹
yrs
%

Defaults model a ₹50 lakh floating-rate home loan. Change any field.

If the RBI’s +25 bps reaches your loan
+₹794a month
EMI
₹43,391 → ₹44,186
Or keep the EMI
12 more months
Interest over the loan
+₹1,90,650
Rate
8.50% → 8.75%
Standard amortisation on the balance left. Your lender’s spread and reset date decide when, and how much of this, you see.

How it reaches loans in India

New floating-rate home loans follow the repo rate within three months

Floating-rate home loanDirect
Priced off
External benchmark, usually the repo rate
Resets
At least once every three months
Most new floating-rate retail loans must be linked to an external benchmark, and most banks use the repo rate. When the rate resets, borrowers can choose a higher EMI, a longer tenure, or both.
Older MCLR-linked loanLagged
Priced off
Bank's marginal cost of funds based lending rate
Resets
On the loan's reset date, often yearly
Loans priced off a bank's internal MCLR follow policy moves later and usually by less.
Your loan agreement’s benchmark and reset clause decide which applies.

Where this cycle stands

This tightening cycle is +25 bps in. The five before it ran a median +250 bps over 9 months.

This cycleEarlier tightening cycles, by start yearMedian total

Every cycle since 2004

Six tightening and five easing cycles. Hover one to trace it.

Tightening · latest+25 Oct 2026 · 1 move
Easing−125 Feb 2025 to Dec 2025 · 4 moves
Tightening+250 May 2022 to Feb 2023 · 6 moves
Easing−250 Feb 2019 to May 2020 · 7 moves
Tightening+50 Jun 2018 to Aug 2018 · 2 moves
Easing−200 Jan 2015 to Aug 2017 · 7 moves
Tightening+75 Sept 2013 to Jan 2014 · 3 moves
Easing−125 Apr 2012 to May 2013 · 4 moves
Tightening+375 Mar 2010 to Oct 2011 · 13 moves
Easing−425 Oct 2008 to Apr 2009 · 6 moves
Tightening+300 Oct 2005 to Jul 2008 · 10 moves

Against the Fed

India’s policy repo rate sits 150 bps above the Fed’s upper bound: a narrower gap than on 85% of days since 2004.

India minus United States, in bpsZero: the same rate
Gap today+150 bps7 Oct 2026
A year ago+125 bps7 Oct 2025
Widest since 2004+825 bpsOct 2011
Narrowest since 2004+100 bpsJul 2023
Holding rupees earns more than holding dollars, which supports the rupee; a narrowing gap removes some of that support. One input among many, not a forecast.

The record since 2000

63 moves since October 2004, from a high of 9.00% in Jul 2008 to a low of 4.00% in May 2020.

Policy repo rateHikeCutPre-2004 observations, not used in findings
Live shows the verified record. Announced and Decided preview the states this page goes through on decision day.

Every decision

62 Monetary Policy Committee decisions since Oct 2016: 9 hikes, 13 cuts and 40 holds.

Raised to 5.50%+257 Oct 2026 · 6–0 vote
Held at 5.25%±05 Aug 2026 · 6–0 vote
Held at 5.25%±05 Jun 2026 · 6–0 vote
Held at 5.25%±08 Apr 2026 · 6–0 vote
Held at 5.25%±06 Feb 2026 · 6–0 vote
Cut to 5.25%−255 Dec 2025 · 6–0 vote
Held at 5.50%±01 Oct 2025 · 6–0 vote
Held at 5.50%±06 Aug 2025 · 6–0 vote
Cut to 5.50%−506 Jun 2025
Cut to 6.00%−259 Apr 2025 · 6–0 vote
Cut to 6.25%−257 Feb 2025 · 6–0 vote
Held at 6.50%±06 Dec 2024
Held at 6.50%±09 Oct 2024
Held at 6.50%±08 Aug 2024 · 4–2 vote
Held at 6.50%±07 Jun 2024 · 4–2 vote
Held at 6.50%±05 Apr 2024 · 5–1 vote
Held at 6.50%±08 Feb 2024 · 5–1 vote
Held at 6.50%±08 Dec 2023 · 6–0 vote
Held at 6.50%±06 Oct 2023 · 6–0 vote
Held at 6.50%±010 Aug 2023 · 6–0 vote
Held at 6.50%±08 Jun 2023 · 6–0 vote
Held at 6.50%±06 Apr 2023 · 6–0 vote
Raised to 6.50%+258 Feb 2023 · 4–2 vote
Raised to 6.25%+357 Dec 2022 · 5–1 vote
Raised to 5.90%+5030 Sept 2022 · 5–1 vote
Raised to 5.40%+505 Aug 2022 · 6–0 vote
Raised to 4.90%+508 Jun 2022 · 6–0 vote
Raised to 4.40%+404 May 2022 · 6–0 vote · unscheduled
Held at 4.00%±08 Apr 2022 · 6–0 vote
Held at 4.00%±010 Feb 2022 · 6–0 vote
Held at 4.00%±08 Dec 2021 · 6–0 vote
Held at 4.00%±08 Oct 2021 · 6–0 vote
Held at 4.00%±06 Aug 2021 · 6–0 vote
Held at 4.00%±04 Jun 2021 · 6–0 vote
Held at 4.00%±07 Apr 2021 · 6–0 vote
Held at 4.00%±05 Feb 2021 · 6–0 vote
Held at 4.00%±04 Dec 2020 · 6–0 vote
Held at 4.00%±09 Oct 2020 · 6–0 vote
Held at 4.00%±06 Aug 2020 · 6–0 vote
Cut to 4.00%−4022 May 2020 · 5–1 vote · unscheduled
Cut to 4.40%−7527 Mar 2020 · unscheduled
Held at 5.15%±06 Feb 2020 · 6–0 vote
Held at 5.15%±05 Dec 2019
Cut to 5.15%−254 Oct 2019 · 5–1 vote
Cut to 5.40%−357 Aug 2019 · 4–2 vote
Cut to 5.75%−256 Jun 2019
Cut to 6.00%−254 Apr 2019 · 4–2 vote
Cut to 6.25%−257 Feb 2019
Held at 6.50%±05 Dec 2018
Held at 6.50%±05 Oct 2018
Raised to 6.50%+251 Aug 2018
Raised to 6.25%+256 Jun 2018 · 6–0 vote
Held at 6.00%±05 Apr 2018 · 5–1 vote
Held at 6.00%±07 Feb 2018 · 5–1 vote
Held at 6.00%±06 Dec 2017
Held at 6.00%±04 Oct 2017
Cut to 6.00%−252 Aug 2017
Held at 6.25%±07 Jun 2017
Held at 6.25%±06 Apr 2017 · 6–0 vote
Held at 6.25%±08 Feb 2017 · 6–0 vote
Held at 6.25%±07 Dec 2016 · 6–0 vote
Cut to 6.25%−254 Oct 2016 · 6–0 vote

Among 7 central banks

World view

India’s 5.50% is the 2nd highest of the seven, between Brazil (13.75%) and Australia (4.60%).

India