RBI MPC October 2026: Key Things To Know Ahead Of Policy Decision

The Reserve Bank of India (RBI) is set to hold its fourth Monetary Policy Committee (MPC) meeting of FY 2026-27 in October 2026 as it reviews onn the latest inflation and economic conditions.

When Is The October MPC Meeting?

The Reserve Bank of India’s Monetary Policy Committee (MPC) meeting is scheduled from October 5 to 7, 2026. The policy decision and RBI Governor’s announcement are due on October 7 at 10:00 am IST. The current repo rate stands at 5.25 per cent.

The Monetary Policy Committee is a six-member body comprising the RBI Governor as its chairperson, the Deputy Governor in charge of monetary policy, an RBI officer nominated by the Central Board and three external members.

Will RBI Hike The Repo Rate In October?

The repo rate currently stands at 5.25 per cent, with economists divided over whether the Reserve Bank of India (RBI) could raise it at the October Monetary Policy Committee (MPC) meeting. In a Reuters poll of 61 economists conducted between September 18 and 28, 35 expected a 25 basis point increase to 5.50 per cent. Such a move would be the first repo rate increase since February 2023.

The poll also indicated expectations of another rate increase in December. Of the 53 economists who gave a forecast for the December meeting, 29 expected at least a further 25-basis-point hike.

What Happened In The Last MPC Meeting?

At its August 2026 meeting, the RBI kept the repo rate unchanged at 5.25 per cent and retained its neutral policy stance. The SDF rate remained at 5.00 per cent, while the MSF rate and Bank Rate stayed at 5.50 per cent.

The six-member MPC comprises RBI Governor Sanjay Malhotra as the chairperson, Deputy Governor Poonam Gupta, Executive Director Indranil Bhattacharyya and three external members, including Nagesh Kumar, Saugata Bhattacharya and Ram Singh.

Amid expectations around the repo rate decision, Puja Abhishek Singh, CEO, Manipal Fintech, said inflation will be closely watched at the upcoming MPC meeting, with a possible 25 bps rate increase being discussed.

On the impact on home loan borrowers, she said, “Borrowers on repo-linked loans may see a slight impact on EMIs or loan tenure, while those with older MCLR-linked loans can compare their current rates with available offers and consider switching if it could help them save on their overall borrowing cost.”

She further added, “For FD savers, a higher-rate environment could offer an opportunity to earn better returns on deposits, although the impact may vary from bank to bank. Going forward, the RBI’s approach to inflation will be key to the interest-rate outlook."