07/10/2026
RBI's October Monetary Policy has changed the market outlook.
The Reserve Bank of India has announced a 25 bps repo rate hike, taking the repo rate to 5.50%. More importantly, the RBI has shifted its policy stance to Calibrated Tightening, indicating that controlling inflation is now the top priority.
Key Announcements
โ Repo Rate: 5.50%
โ GDP Growth Forecast: 7.1%
โ Inflation Forecast: 5.2%
โ Rate cuts are unlikely in the near future unless inflation improves significantly.
Market Impact
๐ Realty, Auto and NBFC stocks faced pressure.
๐ฆ Banking stocks recovered after initial weakness.
๐ The benchmark indices remained volatile as investors assessed the policy implications.
This policy will influence EMIs, loan rates, fixed deposits and investment decisions over the coming months.
Do you believe this market correction is a buying opportunity? Share your thoughts in the comments.