The minutes show the Monetary Policy Committee voted to raise the repo rate by 25 basis points to 5.50% at its Oct. 5-7 meeting, with every member backing the hike. Four members favored shifting to calibrated tightening, while Nagesh Kumar and Ram Singh preferred to hold the stance. CPI inflation rose to 4.8% in August from 4.5% in July, core inflation was 4.2%, and the share of basket items with inflation above 4% climbed to about 37% from 20% in March. The RBI projects CPI inflation of 5.2% for fiscal 2026-27, though these are forecasts, and cites a weak monsoon, El Niño and high energy costs as risks. Deputy Governor Poonam Gupta urged acting before price pressures are clearer, while Singh warned prolonged hikes could weaken demand; the stance rules out near-term cuts.
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