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RBI Increases Repo Rate by 25 Basis Points to 5.5%

The Reserve Bank of India has raised the repo rate by 25 basis points to 5.5%, marking its first increase in nearly four years. With this hike, home and personal loans are expected to become more expensive for borrowers.

Sahil Sharma

Sahil Sharma

Oct 8, 2026

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This article was curated with AI assistance and published by the MBN News Desk.

RBI Increases Repo Rate by 25 Basis Points to 5.5%
AI Generated ImageSource: MBN News Desk

Key Takeaways

  • •RBI raises repo rate to 5.5%
  • •Home loans to become costlier
  • •First hike in nearly four years

The Reserve Bank of India (RBI) has announced a significant increase in its repo rate, raising it by 25 basis points to 5.5%. This decision marks the first increase in nearly four years.

With the repo rate now set at 5.5%, borrowing costs for home and personal loans are expected to rise.

  • First increase in four years — the repo rate hike reflects economic pressures.
  • Impact on home loans — borrowers may face increased costs.
Source: MBN News Desk
#Reserve Bank of India#repo rate#inflation#home loans#economic stability#interest rates#monetary policy#consumer spending#RBI meeting#India

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