Many experts believe the Reserve Bank of India (RBI) could increase the repo rate by 25 bps from 5.25% to 5.50% in the Monetary Policy Committee (MPC) meeting concluding on Wednesday (October 7, 2026). They cite that factors such as high inflation, rising crude prices, a weak rupee, supply disruptions due to geopolitical tensions and a Fed rate hike may be behind the rate hike.
If the RBI goes for a policy rate hike on Wednesday, it may be beneficial for fixed deposit (FDs) investors, who may see the beginning of the return of a rising interest-rate scenario.
