The minutes of the Reserve Bank of India's Monetary Policy Committee, released on 21 October 2026, show that all six members voted to raise the repo rate by 25 basis points to 5.50% at the 5-7 October meeting, according to Business Standard. Spectate Media has not seen the RBI document and relies on that report and on SCC Online's summary of the policy statement.
Stance split
The committee changed its stance from neutral to "calibrated tightening", and two external members, Nagesh Kumar and Ram Singh, opposed that change. Governor Sanjay Malhotra said the shift means rate cuts are off the table in the near term, and that the next move can only be a hike or a pause. Deputy Governor Poonam Gupta, who proposed the stance change, said inflation comes mostly from external supply shocks but that policy works with a lag, so a further hike may be needed.
What the members said
Saugata Bhattacharya said price pressures are becoming entrenched and flagged balance-of-payments risks. Indranil Bhattacharyya urged the committee to act pre-emptively. Ram Singh, one of the two dissenters on stance, pointed to a median household inflation expectation of 9.9% for three months ahead and favoured gradual hikes over a long cycle. Nagesh Kumar said inflation is largely supply-driven and a neutral stance was appropriate.
Inflation path
Headline CPI inflation rose to 4.8% in August from 4.5% in July. The RBI projects 5.2% for 2026-27, with quarterly estimates of 4.9% for the second quarter, 6.0% for the third, 5.7% for the fourth and 5.6% for the first quarter of 2027-28. The sources give different core inflation figures, so none is used here. The next meeting is on 2-4 December.
Key numbers
- Repo rate: 5.50% (Up 25 bps; all six members in favour)
- Stance: Calibrated tightening (Two of six members opposed)
- CPI projection, 2026-27: 5.2% (August print was 4.8%)
- Q3 CPI projection: 6.0% (Top of the tolerance band)
What boards and CFOs should note
Three points stand out. First, borrowers should not plan on lower rates in the near term. Second, the committee itself is divided on how far tightening should go. Third, December-quarter inflation is expected to touch the top of the tolerance band.
Source: Business Standard, 21 October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
