Archive · 7 Oct 2026
RBI Raises Repo Rate to 5.50%, Borrowing Costs May Rise
India’s central bank, the Reserve Bank of India, raised its repo rate by 25 basis points.
The rate is now 5.50%.
The bank said it wanted to keep inflation under control.
The reports say home loans and other loans may become more expensive.
One report says the announcement came before Durga Puja and Diwali.
Congress criticized the decision with a “Mehengai Man” jibe.
NDA leaders pointed to global headwinds.
The reports do not say exactly how much any borrower’s payments will change.
The Reserve Bank of India raised its repo rate by 25 basis points to 5.50%.
The RBI said the increase was intended to keep inflation under control.
The reports say home loans and other borrowing costs may rise after the hike.
One report says the announcement came ahead of Durga Puja and Diwali.
Congress criticized the move with a “Mehengai Man” jibe, while NDA leaders cited global headwinds.
- Who
- The Reserve Bank of India announced the rate increase; Congress criticized it, while NDA leaders cited global headwinds.
- What
- The repo rate was raised by 25 basis points to 5.50%, with borrowing costs potentially rising.
- When
- Ahead of Durga Puja and Diwali; no specific date is given.
- Where
- India.
- Why
- The RBI said the increase was intended to keep inflation under control; the report also presents the question of whether the hike was inevitable.
Criticism of the Hike
Defense and Rationale
Political assessment
Criticism of the Hike
Congress launched a scathing attack and used the “Mehengai Man” jibe.
Defense and Rationale
NDA leaders cited global headwinds; the RBI said the increase was intended to keep inflation under control.
Impact on borrowers
Criticism of the Hike
Higher repo rates may make home loans and other loans more expensive.
Defense and Rationale
The reports do not include a specific estimate of the impact on individual borrowers.
- Institution
- Reserve Bank of India (RBI)
- Rate change
- Increase of 25 basis points
- New repo rate
- 5.50%
- RBI's stated aim
- Keep inflation under control
- Potential effect
- Home loans and other borrowing may become more expensive
- Political response
- Congress criticized the move with a “Mehengai Man” jibe; NDA leaders cited global headwinds
- Timing
- One report said the announcement came ahead of Durga Puja and Diwali
