The Repo Rate Hike: Inflation Gave the Cover, the Rupee Gave the Reason

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SumanSpeaks Independent Capital Markets & Geopolitical Intelligence RBI Policy Decoded The Repo Rate Hike: Inflation Gave the Cover, the Rupee Gave the Reason The RBI raised the repo rate by 25 basis points to 5.50 percent on 7 October 2026. With the rupee at ₹96.78 to the dollar, the Fed at 3.75–4.00 percent and bank credit growing near 18 percent, the fuller story is bigger than August CPI of 4.8 percent. The Reserve Bank of India raised the repo rate by 25 basis points to 5.50 percent on 7 October 2026. It is the first hike since February 2023, and the stance has moved from neutral to calibrated tightening. The rate decision was unanimous. The Governor cited inflation. The Monetary Policy Committee said the inflation outlook is no longer as comfortable as it was last year, and near-term rate cuts were taken off the table. That is the official story, and it is not wrong. But it is incomplete. Look at what surrounds the decision: a rupee near its record...
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Industry pitches for reforms in first 100 days of new govt
CII’s agenda includes a demand for a reduction in the repo and reverse repo rates by at least 50 basis points, to 4.25% and 2.75%, respectively
By Shabana Hussain
New Delhi: Business lobbies Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (Ficci) have recommended a set of economic reforms for the early months of the United Progressive Alliance government.
CII’s agenda includes a demand for a reduction in the repo and reverse repo rates by at least 50 basis points, to 4.25% and 2.75%, respectively.
Disinvestment of equity in well-performing public sector units and introduction of the goods and services tax regime are among the other recommendations. “We expect the new government to move forward on reforms, now that a stable government is in place,” said Venu Srinivasan, president of CII.
In its 100-day agenda, Ficci has asked for measures that will restore economic growth to 9%, from 5.8% in the March quarter. It has asked the government to give incentive to the private sector in agriculture by treating 150% of investment by private firms in the agricultural infrastructure chain as deductible expenditure.
It has also asked for a reduction in interest rate for the manufacturing sector to 8-10%, bringing stability in the policy for special economic zones, and bringing back disinvestment into the mainstream. [From Internet]

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