RBI Monetary Policy Meeting October 2026 LIVE: Nifty, Sensex cautious ahead of Governor Sanjay Malhotra’s RBI policy decision announcement
The Reserve Bank of India’s Monetary Policy Committee (MPC) kicked off its three-day bi-monthly review meeting in Mumbai on October 5. RBI Governor Sanjay Malhotra will announce the decisions taken at the MPC meeting today at 10 AM.
Financial markets are bracing for a potential hike in interest rates amid mounting global and domestic headwinds, reported news agency PTI. “A hike in the short-term lending rate (repo) by the RBI in its upcoming monetary policy would mark a stance reversal, following four rate cuts totalling 125 basis points in 2025 and a prolonged pause thereafter,” the agency reported. The last repo rate hike was in February 2023, when the RBI raised the rate by 25 basis points to 6.50 per cent.
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However, Bank of Baroda Chief Economist Madan Sabnavis was quoted by news agency ANI as saying that the RBI MPC could keep the repo rate unchanged again and may hike rates in its December policy review, with a total increase of 75 basis points.
Global instability, rising CPI big concerns
The central bank’s MPC review comes at a time when the economic policy faces fresh pressures from geopolitical instability and rising prices. Key drivers influencing the committee’s stance include geopolitical tensions, rising Consumer Price Index (CPI), and increasing domestic food price pressure, among other factors.
The prolonged conflict in West Asia and higher crude oil costs are stoking broader macroeconomic concerns with microeconomic consequences they are pinching the common man’s pocket every day. Moreover, concerns over persistent food inflation have kept retail price growth volatile.
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