RBI MPC October 2026: on 7 October 2026 the Reserve Bank of India’s Monetary Policy Committee (MPC) raised the repo rate by 25 basis points, from 5.25% to 5.50%. The decision was unanimous, and the committee changed its stance to “calibrated tightening”. Here is what the hike means for your fixed deposits, loan EMIs and savings, and what to check this week.
Borrowers: see home loan interest rates 2026 by bank.
RBI Repo Rate After the 7 October 2026 Decision
| Policy rate | Before | After 7 Oct 2026 |
|---|---|---|
| Repo rate | 5.25% | 5.50% |
| Standing Deposit Facility (SDF) rate | 5.00% | 5.25% |
| Marginal Standing Facility (MSF) rate | 5.50% | 5.75% |
| Bank rate | 5.50% | 5.75% |
| Policy stance | Neutral | Calibrated tightening |
Source: Business Standard, 7 October 2026. Always confirm the final figures on the RBI website.
What Did the RBI Governor Say About the Next Move?
Governor Sanjay Malhotra said the committee believed a rate cut was unlikely in the near term, which means the next move would be either a further hike or a pause. He added that the duration and extent of the hike cycle would depend on actual growth and inflation developments, especially underlying inflation and how widely price pressures spread.
What the Repo Rate Hike Means for Your Fixed Deposits
Banks do not change deposit rates on the same day as the RBI. They adjust at their own pace, based on their need for funds. After a hike, new FD rates tend to drift higher over the following weeks, and renewals are priced at the new rates. An FD you have already booked is not affected, because its rate is locked in for the full tenure.
As an illustration, Rs 5 lakh in a one-year FD with quarterly compounding grows to about Rs 5,35,930 at 7.00% and about Rs 5,37,248 at 7.25%, a difference of roughly Rs 1,318. Check your bank’s rate card before booking, since no bank’s rates are changed by this article.
To compare banks, see best FD rates in India and the senior citizen FD rates across 45 banks. Use the FD calculator to compare maturity values, and see how FD rates moved over the years.
What the Repo Rate Hike Means for Your Home and Car Loan EMIs
If your loan is linked to the repo rate (an external benchmark), your interest rate rises after your next reset date. Your lender will tell you whether the EMI goes up or the tenure gets longer. Fixed-rate loans are not affected.
| Rs 50 lakh home loan, 20 years | Rate | Monthly EMI |
|---|---|---|
| Before the hike (example) | 8.50% | Rs 43,391 |
| After a 0.25% rise (example) | 8.75% | Rs 44,186 |
| Difference | 0.25% | About Rs 794 a month, about Rs 1.9 lakh over 20 years |
These are worked examples, not your lender’s rates. Model your own loan with the EMI calculator or the home loan EMI calculator.
Should You Book an FD Now or Wait?
With the RBI signalling that cuts are unlikely soon, waiting for much lower deposit rates is a weak reason to hurry. Waiting a few weeks could also bring higher offers, because banks have not all repriced yet. If you need the money fixed for a goal, a laddered approach splits it across tenures, so you do not depend on one rate decision. For other options, see RBI floating rate bonds vs fixed deposits and savings account interest rates by bank.
Frequently Asked Questions
What is the repo rate after the October 2026 RBI policy?
The repo rate is 5.50% after the RBI raised it by 25 basis points on 7 October 2026. The stance is now calibrated tightening.
Will my existing FD rate change after the repo rate hike?
No. The rate on an FD you have already booked stays fixed for the full tenure. Only new deposits and renewals are priced at the new rates.
Will my home loan EMI go up after the RBI rate hike?
It can, if your loan is linked to the repo rate. The change applies from your next reset date, and your lender will say whether the EMI or the tenure changes. Fixed-rate loans do not change.
Will FD rates go up after the repo rate hike?
New FD rates often rise after a hike, but banks move at different speeds. Check your bank’s current rate card before booking.
When is the next RBI MPC meeting?
The RBI publishes its bi-monthly policy calendar on its website. Check rbi.org.in for the next date.
Updated 7 October 2026. This article is for general information and is not investment advice. Check the RBI website for the official policy announcement.