RBI MPC Live Updates: Repo Rate Raised to 5.50% After More Than Three Years, GDP Forecast Up 40 bps to 7.1%, Gold Slips on US Fed Rate Hike Buzz, Home Loan EMI to Rise and How the Day Unfolded
- October 7, 2026
- Posted by: Neeraj Pandey
- Category: News
RBI hiked repo 25 bps to 5.50% (first since Feb 2023), GDP forecast 6.7% to 7.1% (+40 bps), CPI 5.2%. Gold about $4,135 (-0.7%). Sensex low 72,539. Rupee about 96.5.
Quick Answer
RBI MPC live updates on 7 October show that the Monetary Policy Committee raised the repo rate by 25 bps to 5.50% after a gap of more than three years, unanimously, changed the stance to calibrated tightening and raised the FY27 GDP forecast by 40 bps to 7.1% while lifting its inflation forecast to 5.2%. Gold slipped about 0.7% to around $4,135 an ounce on the same day as a firm dollar and elevated US yields offset fading bets on an October Fed hike, which markets now put at roughly 20% to 23%, down from about 70% a week earlier. Home loan EMIs will rise as lenders pass on the hike, by about Rs 794 a month on a Rs 50 lakh, 20-year loan at 8.5%, my calculation, and the Sensex fell as much as 529 points before banks recovered. The sequence of events matters: the hike was expected, so the stance change and the higher inflation path were the real news.
RBI MPC live updates follow a day that began with a rupee near 96.45 and a market expecting a hike, and the decision at 10 am confirmed it. This article logs how the day unfolded, what the numbers mean and how gold, the dollar and the Fed fit in.
If you are following the policy outcome, this article covers the RBI MPC live updates timeline of the day, the unanimous decision, the calibrated tightening stance and forecasts including 5.2% inflation, the home loan EMI impact, the gold price today at $4,134.68 and the US Fed rate hike backdrop, the Sensex reaction and what to watch.
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RBI MPC Live Updates: Timeline of 7 October
| Time (IST) | Event |
|---|---|
| Early trade | The rupee weakened to about 96.45 per dollar ahead of the policy |
| 10:00 am | Governor Sanjay Malhotra announced a unanimous 25 bps hike in the repo rate to 5.50%, the first since February 2023 |
| After the announcement | The stance changed from neutral to calibrated tightening; the SDF rate is 5.25% and the MSF and bank rate 5.75% |
| About 10:15 am | The Sensex was down about 296 points at about 72,772 and the Nifty down about 125 points |
| Morning | The RBI raised the FY27 inflation forecast to 5.2% from 5% and the GDP forecast to 7.1% from 6.7% |
| Around 11 am | The Sensex was down about 0.1% as banks recovered |
| 12:00 noon | The Governor’s post-policy press conference was scheduled |
| About 12:06 pm | The Nifty was near 22,683, down about 0.4%, and the Sensex near 72,878, down about 186 points |
In these RBI MPC live updates, the Sensex fell as much as 529 points to 72,539.18 at its low, and the rupee was seen near 96.54 later in the session.
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The Decision and Forecasts in RBI MPC Live Updates
| Item | New | Earlier |
|---|---|---|
| Repo rate | 5.50% | 5.25% |
| Stance | Calibrated tightening | Neutral |
| FY27 GDP growth | 7.1%, up 40 bps | 6.7% |
| FY27 CPI inflation | 5.2% | 5.0% |
| Quarterly GDP | Q2 7.2%, Q3 6.9%, Q4 6.8%, Q1 FY28 7.1% | Not applicable |
| Quarterly inflation | Q2 4.9%, Q3 6.0%, Q4 5.7%, Q1 FY28 5.6% | Not applicable |
In the RBI MPC live updates, a higher growth forecast with a higher inflation forecast is the combination that justified tightening, since the RBI sees growth strong enough to bear higher rates.
Home Loan EMI: What the Hike Means in RBI MPC Live Updates
| Loan, 20 years | EMI at 8.50% | EMI at 8.75% | Increase |
|---|---|---|---|
| Rs 30 lakh | Rs 26,035 | Rs 26,511 | About Rs 477 a month |
| Rs 50 lakh | Rs 43,391 | Rs 44,186 | About Rs 794 a month |
| Rs 1 crore | Rs 86,782 | Rs 88,371 | About Rs 1,589 a month |
These RBI MPC live updates figures are my illustrative calculations, assuming the full 25 bps is passed on. Loans linked to the repo rate reset at least every three months, and lenders often offer a choice between a higher EMI and a longer tenure.
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Gold Price Today and the US Fed Rate Hike Buzz in RBI MPC Live Updates
| Measure | Level | Note |
|---|---|---|
| Gold on 7 October | About $4,134.68 an ounce, down about 0.7% | Down about 5% over the past month |
| Gold on 5 to 6 October | About $4,140 to $4,165 | Recovered after the biggest weekly fall since June |
| Gold in September | Down more than 6% | Energy-driven inflation worries and higher US rate expectations |
| Fed funds range | 3.75% to 4.00% | After a 25 bps hike in September, the first since 2023 |
| October Fed hike odds | About 20% to 23% | Down from about 70% a week earlier after weak payrolls |
| December Fed hike | A full quarter point priced in | According to rate swaps |
Gold does not pay interest, so higher US rates and a firm dollar weigh on it, while fading bets on an October Fed hike offer some support. A weak rupee near 96.5 cushions Indian buyers, so gold in rupees has fallen less than in dollars, a point to remember in RBI MPC live updates.
Market Reaction in RBI MPC Live Updates
| Measure | Level | Note |
|---|---|---|
| Sensex, Tuesday close | 73,067.81 | After two straight gains |
| Sensex, session low | 72,539.18 | Down up to 529 points |
| Nifty, Tuesday close | 22,776.10 | Reclaimed 22,700 earlier in the week |
| Autos and realty | Down about 1.1% and 0.6% | Rate-sensitive sectors weaker |
| Banks | Fell, then recovered | Private banks up about 0.4%, PSU banks about 0.8% at one point |
| Rupee | About 96.54 | Weaker through the day |
Closing figures were not available when these RBI MPC live updates were written, so check the exchange data for the final levels.
What Analysts Said in RBI MPC Live Updates
| Source | View |
|---|---|
| Aditi Nayar, ICRA | The outcome matched expectations, and the stance change clearly signals that rate cuts are off the table |
| Goldman Sachs | Expected hikes in October and December |
| SBI Research and Nomura | Saw the repo rate at 5.75% after December |
| Commentators on the stance | The change to calibrated tightening reverses the earlier neutral stance |
Risks After the Decision in RBI MPC Live Updates
More hikes: Another 25 bps in December would raise EMIs again, beyond these RBI MPC live updates.
Inflation: The RBI projects 6.0% inflation in Q3, at the top of its tolerance band.
Oil and the rupee: Brent near $100 and a weak rupee add to price pressure.
Global yields: US Treasury yields near multi-year highs can pull Indian yields up.
Growth: Higher loan costs can slow demand for housing and vehicles after the RBI MPC live updates decision.
What to Watch Next After the RBI MPC Live Updates
- Bank announcements on repo-linked lending rate changes.
- September CPI inflation, expected near 5.5%.
- TCS Q2 results on 8 October and early bank Q2 results.
- The next Fed meeting and US jobs and inflation data.
- Gold’s reaction to US yields and the dollar.
Conclusion
RBI MPC live updates on 7 October show a 25 bps hike to 5.50%, a change to calibrated tightening, a GDP forecast raised to 7.1% and inflation at 5.2%, with home loan EMIs set to rise and gold slipping to about $4,135. The hike was expected, so the stance and the inflation path matter most. Consult a SEBI-registered advisor before making any decision.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
What did the RBI announce in the RBI MPC live updates?
Ans. A unanimous 25 bps hike to 5.50%, the first since February 2023, with the stance changed to calibrated tightening.
What are the new GDP and inflation forecasts?
Ans. The RBI MPC live updates show FY27 GDP growth of 7.1%, up 40 bps from 6.7%, and FY27 CPI inflation of 5.2%, up from 5.0%.
How much will my home loan EMI rise?
Ans. In the RBI MPC live updates figures, a Rs 50 lakh, 20-year loan at 8.5% sees about Rs 794 a month more if the full 25 bps is passed on, my calculation.
Why did gold slip on 7 October?
Ans. As the RBI MPC live updates unfolded, a firm dollar and high US Treasury yields outweighed fading bets on an October Fed hike, taking gold to about $4,135.
Will the US Fed hike in October?
Ans. Markets put the odds at roughly 20% to 23%, down from about 70% a week earlier, with a full hike priced by December.
How did the market react?
Ans. In the RBI MPC live updates, the Sensex fell as much as 529 points to 72,539.18 and banks recovered while autos and realty fell.
What does calibrated tightening mean?
Ans. It signals that the RBI is leaning toward further rate increases if needed and that rate cuts are off the table.
Should I change my investments after the RBI hike?
Ans. This article does not constitute investment advice. The RBI MPC live updates are informational. Consult a SEBI-registered financial advisor.
