What the RBI decided
| Rate | Before | From 7 October 2026 |
|---|---|---|
| Repo rate | 5.25% | 5.50% |
| Standing deposit facility | 5.00% | 5.25% |
| Marginal standing facility / Bank rate | 5.50% | 5.75% |
- The vote on the rate was unanimous; the stance moved from neutral to calibrated tightening, signalling that cuts are off the table for now.
- Projections for 2026-27: GDP growth 7.1%, CPI inflation 5.2%.
- Minutes are due on 21 October; the next meeting is 2–4 December 2026.
For startups and businesses
- Floating-rate debt — working-capital lines, term loans and many venture-debt facilities linked to external benchmarks — will reprice upwards as lenders pass on the hike.
- Runway: rerun your cash forecast with higher interest costs — try the runway calculator.
- Treasury: idle cash in fixed deposits may earn more as banks raise deposit rates.
- Borrowing from a foreign parent instead? See intercompany loans and ECB.
For individuals and NRIs
- Home and other floating-rate loan EMIs are likely to rise as banks reset their repo-linked rates.
- Fixed-deposit rates — including NRE and NRO deposits — tend to follow; interest on NRE deposits stays tax-free in India for non-residents. See NRE vs NRO vs FCNR.
- The October policy didn’t announce changes to LRS, FEMA or NRI deposit rules.
Frequently asked questions
What is the repo rate after the October 2026 RBI policy?
5.50%, after a 25 basis point increase announced on 7 October 2026 — the first hike since February 2023.
Will home loan EMIs increase after the repo rate hike?
Floating-rate loans linked to the repo rate are likely to reprice upwards as banks pass on the increase, raising EMIs or extending tenures.
When is the next RBI monetary policy meeting?
2–4 December 2026; minutes of the October meeting are due on 21 October 2026.
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.