RBI MPC Minutes: 25 Bps Rate Hike to 5.50% Unanimous; Stance Shifts to Calibrated Tightening as Q3 CPI Heads to 6%

The detailed disclosures confirm a decisive hawkish recalibration, marked by an across-the-board 25-basis-point hike in the policy repo rate to 5.50% and a policy stance shift to "Calibrated Tightening."

Voting Breakdown and Policy Corridor Adjustment

The central bank realigned the Liquidity Adjustment Facility (LAF) corridor following two distinct votes:

• Policy Repo Rate (Unanimous 6–0): All six members—Dr. Nagesh Kumar, Shri Saugata Bhattacharya, Prof. Ram Singh, Shri Indranil Bhattacharyya, Deputy Governor Dr. Poonam Gupta, and Governor Shri Sanjay Malhotra—voted to hike the repo rate from 5.25% to 5.50%.
• SDF and MSF Adjustments: The Standing Deposit Facility (SDF) rate automatically adjusted to 5.25%, while the Marginal Standing Facility (MSF) rate and Bank Rate moved to 5.75%.
• Stance Dissent (4–2 Majority): The MPC shifted its stance to Calibrated Tightening, carried by a 4–2 majority. External members Dr. Nagesh Kumar and Prof. Ram Singh voted to retain a "Neutral" stance, cautioning against premature policy rigidity amid global trade uncertainties.

The resolution clarified that "Calibrated Tightening" explicitly rules out rate cuts in the near term; subsequent policy moves can only comprise a further hike or an extended pause.