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RBI hikes repo rate by 25 basis points to 5.5% amid inflation

The RBI raised the repo rate by 25 basis points to 5.5% on October 7, 2026, amid rising inflation concerns and a challenging global economic environment.

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The Reserve Bank of India (RBI) raised its benchmark repo rate by 25 basis points to 5.5% on Wednesday, October 7, as policymakers respond to mounting inflationary pressures and a challenging global economic environment.

The decision marks the central bank’s first interest rate increase in nearly four years. The six-member Monetary Policy Committee (MPC), headed by RBI Governor Sanjay Malhotra, took the decision during its latest monetary policy review.

The rate increase follows a period in which the RBI cut the repo rate by a cumulative 125 basis points in 2025, bringing it down from 6.5% to 5.25%. The central bank had subsequently kept the rate unchanged through several policy reviews.

Why the RBI raised the repo rate

Rising inflation has emerged as a key concern for the central bank. India’s consumer inflation rose to 4.82% in August, moving above the RBI’s 4% target for the third consecutive month.

Higher crude oil prices and food costs have added to concerns about further price pressures. The geopolitical situation and a weak monsoon have also increased uncertainty around the inflation outlook.

India’s dependence on imported crude oil makes the economy vulnerable to increases in international energy prices, which can raise import costs and contribute to domestic inflation.

Against this backdrop, the RBI’s decision signals a shift towards tighter monetary policy. The central bank’s approach will remain important for determining how it balances price stability with the need to sustain economic growth.

What the repo rate hike means

The repo rate is the interest rate at which the RBI lends money to banks against eligible securities. Changes in this rate can influence borrowing costs across the financial system.

A higher repo rate can make borrowing more expensive for banks and, depending on how lenders adjust their rates, for households and businesses as well.

For borrowers with loans linked to external benchmarks, the increase could put upward pressure on interest payments and equated monthly instalments (EMIs). However, the actual impact will depend on individual loan terms, benchmark arrangements and lenders’ decisions.

Higher interest rates can also moderate demand in the economy, helping to contain inflationary pressures over time.

RBI’s growth outlook remains important

Despite concerns about inflation, India’s economic growth has remained resilient. The RBI has projected GDP growth of 7.1% for the 2026-27 financial year, according to .

The latest policy decision therefore comes at a time when policymakers must weigh rising prices against the risks that tighter financial conditions could pose to economic activity.

The RBI’s assessment of future inflation, growth and liquidity conditions will remain important in determining the direction of monetary policy in the coming months.

What to watch after the policy decision

Markets and borrowers will be watching the RBI’s guidance on future interest rate decisions, its assessment of inflation risks and its approach to liquidity management.

The 25-basis-point increase marks a change from the rate-cutting phase of 2025 and the subsequent pause. Whether further increases follow will depend on the evolving economic situation and the central bank’s assessment of price stability and growth.

The repo rate decision is therefore an important development for India’s monetary policy, with potential implications for borrowing costs, financial markets and the wider economy.

Entertainment

CID creator BP Singh dies of heart attack, film industry pays tribute

B.P. Singh, the creator and producer-director of CID, has died after suffering a heart attack. His contribution to Indian television has prompted tributes from colleagues and members of the entertainment industry.

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BP Singh

Veteran television producer-director B.P. Singh, best known for creating the popular crime investigation series CID, has died after suffering a heart attack. His death on Tuesday, October 27, prompted tributes from colleagues and members of the entertainment industry, who remembered his contribution to Indian television.

Filmmaker Ashoke Pandit shared the news of Singh’s death in a social media post, remembering him as an accomplished filmmaker whose work had captivated audiences through shows such as CID and Aahat.

Pandit also recalled his association with Singh during the latter’s tenure as president of the Indian Film and Television Directors’ Association. Expressing grief over the loss, he described Singh as a close friend and a person whose work would continue to inspire future generations.

The last rites are scheduled to take place on Wednesday, October 28, according to Pandit’s post.

BP Singh’s contribution to Indian television

Born Brijendra Pal Singh, B.P. Singh established himself as a prominent figure in Indian television through his work as a producer and director. He created CID, one of the country’s longest-running crime investigation shows, which premiered in 1998 and followed a team of Mumbai crime branch officers investigating cases.

The series became widely recognised among television audiences and ran for around two decades. Singh also occasionally appeared on the show as DCP Shamsher Singh Chitrole.

One of the show’s notable milestones came in October 2004, when a special episode was filmed in a single continuous take lasting 111 minutes. The achievement received recognition in the Limca Book of Records and the Guinness World Records.

Singh’s work was not limited to crime dramas. He was also associated with Aahat, a popular horror television series that aired from 1995 to 2015. His other projects included Khaaki, Abhay and SuperCops Vs Super Villains.

Ashoke Pandit remembers the veteran filmmaker

In his tribute, Pandit recalled Singh’s professional achievements and their personal association. He praised the filmmaker’s work on CID and Aahat and expressed condolences to his family and loved ones.

Singh’s death marks the loss of a veteran television professional whose productions helped shape crime and horror programming in India.

His work on CID and Aahat remains a significant part of his legacy in Indian television.

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India News

India invites Pakistan minister Aurangzeb Khan Khichi for SCO forum

India has invited Pakistan’s Culture Minister Aurangzeb Khan Khichi to the SCO Civilisational Dialogue Forum in New Delhi, scheduled for November 20–22. Pakistan’s participation remains unconfirmed.

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India has invited Pakistan’s Minister for National Heritage and Culture, Aurangzeb Khan Khichi, to attend the inaugural Civilisational Dialogue Forum of the Shanghai Cooperation Organisation (SCO) in New Delhi in November.

The invitation comes ahead of the two-day SCO Council of Ministers of Culture meeting scheduled for November 20 and 21. The wider Civilisational Dialogue Forum is expected to take place from November 20 to 22, bringing together representatives of SCO member countries and other invited participants.

However, Pakistan has not yet confirmed whether it will send a delegation to the event. Its government is reviewing the invitation and is expected to decide on participation following internal consultations, according to reports citing diplomatic sources.

What is the SCO Civilisational Dialogue Forum?

The Civilisational Dialogue Forum is an initiative aimed at promoting awareness of the shared civilisational heritage of SCO member countries and encouraging cultural exchanges among them.

Prime Minister Narendra Modi proposed the forum at the SCO leaders’ summit in Tianjin, China, in 2025. The proposal was subsequently adopted by the organisation’s council.

India’s Defence Minister Rajnath Singh announced on October 20 that the country would host the first forum, inviting all SCO member states to participate.

The event is being organised by India’s Ministry of Culture and Ministry of External Affairs. According to reports, it is planned at Purana Qila, the historic fort in New Delhi.

The proposed discussions will cover religious and philosophical traditions, art and architecture, language and literature, manuscript traditions, and cultural expressions and living traditions across participating countries.

India-Pakistan engagement through the SCO

India and Pakistan are both members of the Shanghai Cooperation Organisation, which provides a platform for regional cooperation despite differences between the two countries.

The invitation follows previous high-level engagements between the neighbours under the SCO framework. Pakistan’s then Foreign Minister Bilawal Bhutto-Zardari travelled to Goa in May 2023 to attend an SCO Council of Foreign Ministers meeting hosted by India.

In October 2024, India’s External Affairs Minister S Jaishankar visited Islamabad for the SCO Council of Heads of Government meeting. India also sent its SCO National Coordinator, Alok Dimri, to Islamabad for a meeting in September 2026.

If Khichi attends the November forum, it would mark another ministerial-level visit from Pakistan to India under the SCO framework since the 2023 meeting in Goa. However, his participation has not yet been confirmed.

What happens next?

The immediate development to watch is Islamabad’s decision on whether to send its culture minister or another delegation to New Delhi.

The invitation is part of India’s engagement with the SCO’s multilateral framework. It should not, by itself, be interpreted as confirmation of a separate bilateral diplomatic breakthrough between India and Pakistan.

For now, the forum is scheduled for November, while Pakistan’s final participation remains undecided.

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India News

Cyclone Arnab nears Andhra Pradesh coast, red alert issued

Cyclone Arnab is approaching the Andhra Pradesh coast, prompting a red alert for Andhra Pradesh and adjoining south Odisha. The storm is expected to bring winds of 115–125 kmph, with gusts reaching 140 kmph.

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Cyclone Arnab is moving towards the Andhra Pradesh coast, with the India Meteorological Department (IMD) warning of a very severe cyclonic storm expected to make landfall on Wednesday, October 28. Authorities in Andhra Pradesh and neighbouring Odisha have stepped up precautionary measures as the system approaches the eastern coastline.

The IMD has issued a red-message cyclone warning for Andhra Pradesh and adjoining south Odisha. The storm is expected to cross the Andhra Pradesh and Yanam coasts between Bapatla and Visakhapatnam by the forenoon of October 28, close to Yanam.

At the time of the IMD’s October 27 morning bulletin, the cyclone was centred over the west-central Bay of Bengal, around 260 km southeast of Visakhapatnam. It was moving westwards at approximately 22 kmph during the preceding six hours.

Cyclone Arnab landfall forecast and wind speed

According to the weather department, Cyclone Arnab is expected to cross the coast as a very severe cyclonic storm, with maximum sustained wind speeds of 115–125 kmph and gusts reaching 140 kmph.

The approaching system is also expected to bring heavy to extremely heavy rainfall to parts of Andhra Pradesh. The red alert signals the need for heightened preparedness in areas facing the threat of intense rain and strong winds.

Andhra Pradesh and Odisha step up precautions

Authorities in Andhra Pradesh and Odisha have intensified preparations ahead of the expected landfall. Precautionary measures include school closures in affected areas, restrictions on sea fishing and the deployment of emergency response teams.

The National Disaster Response Force (NDRF) has stationed teams across several locations in Andhra Pradesh, including Kakinada, Konaseema, East Godavari, West Godavari, Krishna and Anakapalli districts. Additional teams have been kept on standby to respond to emergencies.

Officials have also been directed to ensure the availability of essential commodities and the swift restoration of electricity and other essential services in the event of disruptions.

The weather department has warned that the cyclone could cause significant rainfall across parts of the eastern region. Residents in vulnerable coastal areas have been urged to follow official advisories and remain cautious as the storm approaches.

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