The Reserve Bank of India (RBI) is expected to raise the repo rate by 25 basis points to 5.50% in October, according to a majority of economists surveyed between September 18 and 28. If implemented, it would be the first RBI rate hike since February 2023. The expected increase comes as inflation has accelerated and energy and food prices remain elevated. India’s retail inflation rose to 4.82% in August, exceeding the RBI’s 4% medium-term target for the third consecutive month. Rising food and energy costs were among the key factors behind the increase. The RBI is also facing pressure from the weakening Indian rupee. The rupee has declined by around 6% against the US dollar this year, adding to concerns over imported inflation and monetary stability. The Reuters poll found that 35 of 61 economists expected the Monetary Policy Committee to increase the repo rate by 25 basis points during its October 5–7 meeting. The survey also showed that 29 of 53 economists expected at least another 25-basis-point rate increase by December. If rates rise, borrowing costs for home loans, personal loans and other floating-rate loans could increase depending on how banks and financial institutions pass on the change. The RBI’s August policy meeting had indicated that further rate action could be considered if inflationary pressures continued to broaden.