Bonds & Rates
Home›Bonds & Rates›Central Banks›RBI set to consider a 25 bps rate hike on October 7
RBI set to consider a 25 bps rate hike on October 7
The decision comes after India’s retail inflation hit 4.82% in August, above the RBI’s 4% target midpoint for a third straight month.
LiveMint Markets reports the Reserve Bank of India is most likely to raise the repo rate by 25 basis points on Wednesday, October 7, following rate-hiking trends taken by other major central banks including the US Federal Reserve, the Bank of Japan, and the European Central Bank.
The outlet says this would be the RBI’s first rate hike since February 2023, as risks around inflation and its effect on economic growth have increased alongside elevated oil prices.
LiveMint Markets also points to India’s retail inflation rising to a 20-month high of 4.82% in August, which is above the RBI’s 4% target midpoint for the third consecutive month since January 2025.
The article adds that inflation could face further pressure from higher oil prices and a weak monsoon, noting that southwest monsoon rainfall in 2026 was reported at 87% of the long-period average, the fourth-lowest since 2001.