India's central bank has raised interest rates for the first time since 2023 as inflation risks build, according to CNBC, with HSBC and Goldman Sachs forecasting a further increase in December.
Key facts
- The Reserve Bank of India (RBI) raised interest rates for the first time since 2023, according to CNBC.
- CNBC reports the move comes as inflation risks build.
- HSBC and Goldman Sachs expect the RBI to raise rates again in December, according to CNBC.
- Reported by CNBC on 7 October 2026.
India’s central bank has raised interest rates for the first time since 2023 as inflation risks build, according to CNBC.
The Reserve Bank of India’s decision ends a stretch of more than two years in which it had refrained from tightening policy.
CNBC reports that both HSBC and Goldman Sachs expect the RBI to raise interest rates again in December.
Central banks typically raise interest rates to curb inflation by making borrowing more expensive, which can slow spending and investment.
The size of the rate increase and the central bank’s detailed reasoning were not specified in the available reporting.
Why it matters
Interest rate decisions by the Reserve Bank of India affect borrowing costs for households and businesses, as well as the value of the rupee and foreign investment flows. A move to raise rates after more than two years points to growing attention on inflation in one of the world's largest economies.
Frequently asked questions
When did the RBI last raise interest rates before this?
According to CNBC, this is the first time the Reserve Bank of India has hiked interest rates since 2023.
Do analysts expect more rate hikes?
Yes. CNBC reports that HSBC and Goldman Sachs expect the RBI to raise interest rates again in December.
Why did the RBI raise rates?
The rate hike comes as inflation risks build, according to CNBC.