{"id":292161,"date":"2026-10-07T12:39:58","date_gmt":"2026-10-07T07:09:58","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=292161"},"modified":"2026-10-07T12:39:58","modified_gmt":"2026-10-07T07:09:58","slug":"rbi-repo-rate-hike-5-50-percent-gdp-forecast-7-1-percent-home-loan-emi-impact","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/rbi-repo-rate-hike-5-50-percent-gdp-forecast-7-1-percent-home-loan-emi-impact\/","title":{"rendered":"RBI Repo Rate Hike to 5.50%: The First Increase Since February 2023, GDP Forecast Raised to 7.1%, the Change to Calibrated Tightening, Home Loan EMI Impact and How Markets Reacted on 7 October"},"content":{"rendered":"

7 Oct: RBI hiked repo 25 bps to 5.50% (unanimous), first since Feb 2023. Stance: calibrated tightening. FY27 GDP 7.1%, CPI 5.2%. Rs 50 lakh loan EMI +about Rs 794.<\/em><\/p>\n

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Quick Answer<\/strong><\/p>\n

RBI repo rate hike of 25 basis points to 5.50% from 5.25% was announced on 7 October 2026 by Governor Sanjay Malhotra, the first increase since February 2023, with all six MPC members voting for it and the stance changed from neutral to calibrated tightening. The RBI raised its FY27 GDP growth forecast to 7.1% from 6.7% and its FY27 inflation forecast to 5.2% from 5%, with quarterly inflation seen at 6% in Q3 and 5.7% in Q4, which is why economists say rate cuts are now off the table. For borrowers, a Rs 50 lakh home loan over 20 years at 8.5% would see the EMI rise by about Rs 794 a month if the full 25 bps is passed on, my calculation, and repo-linked loans typically reset within a quarter. Markets fell modestly, with the Sensex down as much as 529 points at the low, auto and realty stocks weaker and banks recovering, because the hike was widely expected and the stance change was the real signal.<\/p>\n<\/p><\/div>\n

RBI repo rate hike marks a turning point after 125 basis points of cuts in 2025 and four straight pauses at 5.25%, and it comes with oil near $100, a rupee near 96.5 and inflation at 4.82% in August. The decision was announced at 10 am, followed by the Governor’s press conference at noon.<\/p>\n

If you have a loan, deposits or investments, this article covers the RBI repo rate hike decision at the RBI MPC October 2026 meeting led by Governor Sanjay Malhotra with a unanimous vote, the calibrated tightening stance, the 7.1% growth and 5.2% inflation forecasts, the SDF and MSF rates, the home loan EMI impact and repo-linked loan resets, what it means for deposits, how the Sensex, Nifty and rupee reacted, what analysts say and what to watch next. Market numbers are intraday, so check the close.<\/p>\n

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