# RBI May Hike Repo Rate by 25 Bps

> RBI likely to hike repo rate 25 bps in October amid inflation and oil risks.
- Title: RBI May Hike Repo Rate by 25 Bps · The Economic Times
- Summary: RBI likely to hike repo rate 25 bps in October amid inflation and oil risks. RBI will raise repo rate by 25 basis points in October to address rising…
- Keywords: rbi, repo rate, inflation, oil prices, monetary policy, cpi inflation, indian rupee, fed, monetary policy committee, october meeting, money, business
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/stocks/news/rbi-may-hike-repo-rate-by-25-bps-as-inflation-and-oil-risks-mount-sunil-sanghai/articleshow/134672762.cms
- Author: ET CONTRIBUTORS
- Published: 2026-10-04T09:40:00+00:00
- Read time: 1 min
- Topics: rbi, repo rate, inflation, oil prices, monetary policy, cpi inflation, indian rupee, fed, monetary policy committee, october meeting, money, business
## Credit Policy Shift
India now has six monthly rate reviews instead of two seasonal ones.
## Fed Hike Context
US Fed raised target range by 25 bps to 3.75, 4.00% in September.
## RBI Rate Stance
RBI held repo rate at 5.25% for four consecutive meetings after 2025 cuts.
## Inflation Trend
CPI rose to 4.82% in August, highest since December 2024.
## Oil Risk Impact
Landed crude cost stays elevated with geopolitical risk leading to transport and input cost inflation.
## Real Repo Rate
Real repo rate is only about 0.4% for an economy growing strongly.
## Economist Expectations
Some economists expect MPC to hike 25 bps in October and possibly another in December.
## Counter-Argument
Central bank should look through supply shocks as repo hike cannot lower oil prices.
## Likely Action
RBI will move with 25 bps hike and hawkish message to preserve flexibility.
## Key takeaway

RBI will raise repo rate by 25 basis points in October to address rising inflation and oil-related pressures.