# RBI Raises Repo Rate to 5.5% Under Sanjay Malhotra

> RBI hikes repo rate to 5.5% as inflation risks push policy to 'calibrated tightening'.
- Title: RBI Raises Repo Rate to 5.5% Under Sanjay Malhotra | Shortify
- Summary: RBI hikes repo rate to 5.5% as inflation risks push policy to 'calibrated tightening'. RBI raised repo rate to 5.5% in first move under Governor Sanjay…
- Keywords: rbi, repo rate, sanjay malhotra, calibrated tightening, monetary policy committee, inflation, fy27 growth forecast, bond yield, rupee, interest rates, money, business
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/forex/forex-news/rbi-raises-repo-rate-to-5-5-in-first-hike-under-governor-sanjay-malhotra-shifts-stance-to-calibrated-tightening/articleshow/134777167.cms
- Author: ET Bureau
- Published: 2026-10-08T00:00:00+00:00
- Read time: 1 min
- Topics: rbi, repo rate, sanjay malhotra, calibrated tightening, monetary policy committee, inflation, fy27 growth forecast, bond yield, rupee, interest rates, money, business
## RBI Raises Repo Rate
The Reserve Bank of India raised the repo rate to 5.5% in its first policy move under Governor Sanjay Malhotra.
## Policy Stance Shift
The Monetary Policy Committee shifted from 'neutral' to 'calibrated tightening' with four of six members voting to change the stance.
## Inflation Outlook
The MPC stated inflation and its outlook are not benign as they were last year, signaling persistent risks.
## Governor's Statement
Governor Malhotra said rate cuts are off the table in the near term and policy action can only be a hike or pause.
## Market Reaction
The 10-year bond yield climbed to 7.24%, and the rupee retreated to 96.84 per dollar, near its record low.
## Rupee Valuation
Malhotra described the rupee as 'undervalued' and short-term market behavior as 'irrational'.
## Rate Impact
Home and small business loans will rise immediately, but deposit rates are unlikely to increase soon due to liquidity.
## Expert Predictions
Kanika Pasricha expects another 50-basis point increase by year-end, while HDFC Bank and SBI analysts predict further hikes.
## Key takeaway

RBI raised repo rate to 5.5% in first move under Governor Sanjay Malhotra, signaling possible further hikes amid inflation concerns.