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Topic 190 · Economy, Budget & Banking

RBI raises repo rate to 5.50%

10 MCQs · tap an option to check it · All answers

Revise the 12 points first Book 1 RATNA
  1. Core Trigger: On 7 October 2026 the RBI raised the repo rate by 25 bps, from 5.25% to 5.50%, after the 5-7 October MPC meeting.
  2. Policy Stance: The stance shifted from neutral to calibrated tightening, and the Monetary Policy Committee voted unanimously.
  3. Current Head: Governor Sanjay Malhotra chairs the six-member Monetary Policy Committee.
  4. Key Rates: The Standing Deposit Facility rate is 5.25%; the Marginal Standing Facility rate and Bank Rate are 5.75%.
  5. Rate Cycle: This is the first hike in nearly three years; the previous cut, to 5.25%, came in December 2025.
  6. Next Meeting: The next MPC meeting is scheduled for 2-4 December 2026.
  7. India Link: Retail inflation had risen to 4.83% in August 2026, above the 4% target, which framed the tightening.
  8. Headquarters: The Reserve Bank of India is headquartered in Mumbai.
  9. Founded: The RBI began operations on 1 April 1935 under the Reserve Bank of India Act, 1934.
  10. Landmark: The 2016 amendment to the RBI Act created the statutory MPC and adopted flexible inflation targeting.
  11. Statute: Section 45ZB of the RBI Act, 1934 provides for the six-member MPC; section 45ZA lets the Centre notify the inflation target.
  12. Definition: The repo rate is the rate at which the RBI lends to banks against securities; the MSF rate equals repo plus 25 bps.
Question 1 of 10

On 7 October 2026 the RBI raised the repo rate by 25 bps to what level?

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Answer: (C) 5.50%

Core Trigger: On 7 October 2026 the RBI raised the repo rate by 25 bps, from 5.25% to 5.50%, after the 5-7 October MPC meeting.From Book 1 RATNA, topic 190, point 1

Question 2 of 10

The RBI's policy stance shifted from neutral to which stance?

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Answer: (A) Calibrated tightening

Policy Stance: The stance shifted from neutral to calibrated tightening, and the Monetary Policy Committee voted unanimously.From Book 1 RATNA, topic 190, point 2

Question 3 of 10

Who chairs the Monetary Policy Committee?

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Answer: (B) Sanjay Malhotra

Current Head: Governor Sanjay Malhotra chairs the six-member Monetary Policy Committee.From Book 1 RATNA, topic 190, point 3

Question 4 of 10

After the hike, the MSF rate and Bank Rate stand at what level?

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Answer: (A) 5.75%

Key Rates: The Standing Deposit Facility rate is 5.25%; the Marginal Standing Facility rate and Bank Rate are 5.75%.From Book 1 RATNA, topic 190, point 4

Question 5 of 10

The previous rate cut, to 5.25%, came in which month?

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Answer: (C) December 2025

Rate Cycle: This is the first hike in nearly three years; the previous cut, to 5.25%, came in December 2025.From Book 1 RATNA, topic 190, point 5

Question 6 of 10

The next MPC meeting is scheduled for which dates?

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Answer: (B) 2-4 December 2026

Next Meeting: The next MPC meeting is scheduled for 2-4 December 2026.From Book 1 RATNA, topic 190, point 6

Question 7 of 10

The Reserve Bank of India is headquartered in which city?

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Answer: (D) Mumbai

Headquarters: The Reserve Bank of India is headquartered in Mumbai.From Book 1 RATNA, topic 190, point 8

Question 8 of 10

On which date did the RBI begin operations?

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Answer: (B) 1 April 1935

Founded: The RBI began operations on 1 April 1935 under the Reserve Bank of India Act, 1934.From Book 1 RATNA, topic 190, point 9

Question 9 of 10

The 2016 RBI Act amendment created the statutory MPC and adopted which framework?

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Answer: (D) Flexible inflation targeting

Landmark: The 2016 amendment to the RBI Act created the statutory MPC and adopted flexible inflation targeting.From Book 1 RATNA, topic 190, point 10

Question 10 of 10

Consider: 1. Section 45ZB provides for a six-member MPC. 2. Section 45ZA lets the RBI notify the inflation target. Which is/are correct?

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Answer: (A) Only 1

Statute: Section 45ZB of the RBI Act, 1934 provides for the six-member MPC; section 45ZA lets the Centre notify the inflation target.From Book 1 RATNA, topic 190, point 11

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