The Reserve Bank's six-member Monetary Policy Committee ends its October 5-7 meeting today, with Governor Sanjay Malhotra announcing the outcome at 10 am and meeting the press at noon. The repo rate has been 5.25% for four meetings. Economists widely forecast a 25 basis point increase to 5.50%, which would be the first since February 2023 and would follow 125 basis points of cuts in 2025. Consumer inflation was 4.82% in August, up from 4.45% in July and above the 4% target for a third month, with Brent recently above $100 and the rupee under pressure.
Why it matters for listed companies
The repo rate feeds straight into floating-rate home, car and small-business loans linked to external benchmarks, so a change reprices a large part of bank and housing-finance loan books within a quarter, while deposit costs adjust more slowly. Developers and vehicle makers are exposed through EMIs on financed purchases. Rate-sensitive groups were mixed on Tuesday: private banks rose while the realty and PSU bank indices slipped. The decision itself is not known at the time of writing; the stance and the inflation projection matter as much as the rate.
These figures are measured, not attributed. Prices and rates move for many reasons at once; they show
what happened after this story, not that the story caused it. Nothing here is a recommendation to buy, sell or hold.
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