RBI Rate Hike Expected in October: What It Means for Sensex and Nifty
· Business · LiveMint
The Reserve Bank of India’s Monetary Policy Committee is scheduled to meet from October 5 to 7, 2026, to review monetary conditions, with the policy decision due on October 7. Economists expect the central bank to potentially raise the repo rate by 25 basis points to 5.50 percent, marking the first rate hike since February 2023. Sugandha Sachdeva of SS WealthStreet notes that retail inflation stands at 4.82 percent above the 4 percent target, while persistent pressure on the rupee adds imported inflation risks. Rajeev Sharan of Brickwork Ratings highlights that climbing retail inflation, crude oil holding above USD 100, and a slipping currency strengthen the case for a rate increase. The outcome will be closely watched by market participants for cues on the RBI’s interest-rate stance and inflation outlook.
Why it matters
Higher interest rates directly impact borrowing costs for consumers and corporations, influencing loan EMIs and overall market liquidity across the Sensex and Nifty.
Read the original report — LiveMint
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