# RBI MPC October 2026: 5 Factors for Repo Rate Hike

> RBI's October policy meeting may raise repo rate for first time since February 2023.
- Title: RBI MPC October 2026: 5 Factors for Repo Rate Hike · mint
- Summary: RBI's October policy meeting may raise repo rate for first time since February 2023. RBI may hike repo rate by 25 basis points to 5.50% in October 2026 amid…
- Keywords: rbi, repo rate, monetary policy, inflation, rupee, crude oil, global yields, banking liquidity, festive season, monetary policy committee, money, business
- Source: mint — https://livemint.com/market/stock-market-news/rbi-mpc-meeting-october-2026-repo-rate-hike-will-be-decided-by-these-5-factors-explained-11791093642745.html
- Author: Vaamanaa Sethi
- Published: 2026-10-04T07:04:35+00:00
- Read time: 1 min
- Topics: rbi, repo rate, monetary policy, inflation, rupee, crude oil, global yields, banking liquidity, festive season, monetary policy committee, money, business
## RBI repo rate unchanged for four meetings
The Reserve Bank of India has kept the repo rate unchanged at 5.25% for the last four consecutive policy meetings after cutting it by 125 basis points in 2025.
## MPC meeting dates and purpose
The RBI's six-member Monetary Policy Committee will meet from october 5 to 7 to review economic conditions and determine next monetary policy.
## Economists expect 25bps rate hike
Rajeev Sharan, head of research at brickwork ratings, said a 25 basis point hike to 5.50% is realistic for the first increase since early 2023.
## Inflation pressures strengthen case for hike
Retail inflation rose to 4.82% in august and crude oil prices remain above $100 a barrel with rupee weakening beyond 96.
## Domestic headline inflation concerns
Cpi inflation accelerated to 4.82% in august from 4.45% in july with persistent volatility in perishables and staple food items.
## Crude oil dynamics impact inflation
Crude oil prices above $100 per barrel pose imported inflation hazard for an economy that imports over 85% of its oil.
## Rupee depreciation adds pressure
The rupee's depreciation towards 97 against the us dollar raises cost of imports and can add to domestic inflation.
## Global yield spreads affect indian markets
Higher-for-longer sovereign bond yields in advanced economies tighten global liquidity and dampen emerging market risk appetite.
## Banking system liquidity assessment
Rbi will evaluate banking system liquidity, credit growth and monetary policy transmission for its next move.
## Key takeaway

RBI may hike repo rate by 25 basis points to 5.50% in October 2026 amid rising inflation and weak rupee.