RBI Repo Rate at 5.50%: What the First Hike Since 2023 Means for Your FD and Home Loan
Published: November 11, 2026
The RBI raised the repo rate to 5.50% on 7 October 2026, its first hike since February 2023. Loan rates have risen quickly, and the highest FD rates reported at the start of November run from 6.85% at public sector banks to 7.50% at DCB Bank.
Key Points
— the whole story in 10 seconds- 1Repo rate now 5.50% — RBI raised the repo rate by 25 basis points to 5.50% on 7 October 2026 — the first hike in 44 months, since February 2023.
- 2No rate cut on the table yet — The committee was unanimous 6-0 on the hike, but split 4-2 on changing the stance from neutral to “calibrated tightening”; the next move can only be a hike or a pause.
- 3Loans costlier, immediately — Within a day of the decision, several banks raised repo-linked lending rates by the full 25 basis points — PNB from 8.10% to 8.35%, Indian Bank from 7.95% to 8.20% and Bank of Baroda from 7.90% to 8.15%.
- 4FD rates are rising, but not at every bank — In early November 2026, the highest FD rate among public sector banks was 6.85% (Bank of India and Punjab & Sind Bank), while the highest overall was 7.50% at DCB Bank, followed by Bandhan Bank at 7.45%.
Important Dates
The Reserve Bank of India raised its policy repo rate by 25 basis points to 5.50% at its Monetary Policy Committee meeting on 7 October 2026, and the move is now showing up in what banks charge on loans and pay on deposits. As reported by TradingView News on 3 November, it was the central bank's first rate hike in 44 months, after it last raised the repo rate to 6.50% in February 2023. The repo rate is the rate at which banks borrow short-term funds from the RBI, so a change here can influence both lending and deposit rates across the system.
The committee was unanimous on the hike itself, voting 6-0, but split 4-2 on changing the policy stance from neutral to "calibrated tightening", according to NovaRock Advisory's report of the decision published on 1 November. The same report notes that the standing deposit facility rate moved to 5.25% and the MSF and Bank Rate to 5.75%. The RBI's message, as both reports describe it, is that rate cuts are off the table for now, and the next move can only be a hike or a pause. The next policy meeting is scheduled for 2-4 December 2026.
The RBI acted because of inflation, not weak growth. NovaRock reports that India's economy grew 7.8% in the April-June quarter, and the RBI lifted its full-year growth forecast for FY27 to 7.1% while raising its inflation forecast to 5.2%. Retail inflation is projected to touch 6.0% in the October-December quarter, the top of the RBI's tolerance band. In plain terms, the central bank is trying to stop rising prices from becoming a habit before expectations settle in.
For borrowers, the effect was fast. NovaRock reports that within a day of the decision, several banks raised their repo-linked lending rates by the full 25 basis points, effective 8 October, with Punjab National Bank's repo-linked rate moving from 8.10% to 8.35%, Indian Bank's from 7.95% to 8.20% and Bank of Baroda's from 7.90% to 8.15%. Whether your EMI or your loan tenure changes depends on your lender and your loan terms, so check your latest loan statement. As an illustration, NovaRock's own calculation puts the extra EMI on a Rs 50 lakh, 20-year home loan at about Rs 790 a month if the rate rises by 25 basis points.
For savers, fixed deposit rates are moving too, but not automatically. TradingView News reports that a few banks have revised FD rates after the hike, and that revisions depend on individual banks' decisions. At the start of November 2026, Bank of India and Punjab & Sind Bank offered the highest FD rate among public sector banks at 6.85% per annum, while DCB Bank offered the highest maximum FD rate overall at 7.50% per annum, followed by Bandhan Bank at 7.45%, as reported by TradingView News. Note that these are the highest rates on any eligible tenure, not necessarily the rate for a 1-year, 3-year or 5-year deposit, and the rate your own bank pays depends on your bank.
What should you do? If you have a loan, check whether your bank raised your EMI or stretched your tenure, and ask about your spread over the benchmark. If you save in FDs, do not rush to lock a long deposit at the first rate rise, since further hikes could follow, and check your own bank's current rates before deciding, because rates vary by bank and by tenure. Mark 2-4 December 2026 for the next RBI decision. If you want to keep an eye on your money in the meantime, our guide explains how to check your bank balance on your phone.
What to Do Next
— 4 steps to do right now- Check your loan statement — Check whether your bank has raised your EMI or extended your loan tenure, as this depends on your lender and loan terms.
- Ask about your spread over the benchmark — Ask your bank how much spread sits above the benchmark in your loan rate.
- Don’t rush to lock a long FD — Don’t rush to lock a long FD at the first rate rise, as further hikes could follow.
- Check your bank’s current FD rate — Check your bank’s rate before deciding, as rates vary by bank and tenure.
FAQ — Frequently Asked Questions
Tap a question to see the answer.
Q How much did the RBI raise the repo rate, and when? ▾
The RBI raised the repo rate by 25 basis points to 5.50% on 7 October 2026. It was the first hike in 44 months, since February 2023.
Q How will this affect my home loan EMI? ▾
Several banks have raised repo-linked lending rates by the full 25 basis points — for example, PNB’s rate went from 8.10% to 8.35%. According to NovaRock, the extra EMI on a Rs 50 lakh, 20-year home loan would be about Rs 790 a month if the rate rises by 25 basis points. Whether your EMI rises or your tenure extends depends on your lender and loan terms.
Q Who is offering the highest FD rate? ▾
In early November 2026, the highest FD rate among public sector banks was 6.85% (Bank of India and Punjab & Sind Bank), while the highest maximum FD rate overall was 7.50% at DCB Bank, followed by Bandhan Bank at 7.45%. These are the highest rates on any eligible tenure, not the rate for a specific 1-, 3- or 5-year FD.
