The Reserve Bank of India’s Monetary Policy Committee meets from October 5 to 7, and most economists expect a rate hike. Governor Sanjay Malhotra will announce the decision on October 7.

The repo rate stands at 5.25 percent after four straight reviews with no change. Eight of ten economists surveyed by Business Standard expect a 25-basis-point rise to 5.50 percent. If it happens, it will be the first RBI hike since February 2023.

The pressure comes from inflation. Brent crude is above $100 a barrel, and the rupee has lost about 6 percent this year, raising the cost of imports.

At the same time, growth looks strong. April-June GDP grew nearly 8 percent, and bank credit grew over 19 percent in July. That gives the RBI room to tighten without fearing an immediate slowdown.

What a hike means for you: home and car loans could get costlier, and banks may raise deposit rates too. A hike would also try to cool imported inflation from the weak rupee and expensive oil.

Why it matters: the RBI must balance inflation control against growth. Its call will set the tone for borrowing costs through the festive season.