Why Did RBI Hike the Repo Rate? Monetary Policy for UPSC

On 7 October 2026, the RBI raised the repo rate by 25 basis points to 5.50% and shifted its stance to calibrated tightening. In this video, I explain monetary policy from scratch for UPSC, SSC, Banking and State PCS exams: the RBI's roles, the MPC, the policy rate corridor, CRR, SLR, OMO, and how a rate hike reaches your EMI. ⏱ Timestamps 0:00 Hook: the repo rate hike 0:45 What the RBI does 1:45 The Monetary Policy Committee 2:45 The policy rate corridor: repo, SDF, MSF 4:00 CRR, SLR and open market operations 5:30 How the hike reaches your EMI 6:45 Why did the RBI hike? 8:15 Limits of monetary policy and the Mains answer frame 9:15 Quick revision 📝 Mains practice question: Why can monetary policy alone not control supply-side inflation? Write your answer in the comments and I will review the best ones. Rates and projections are from coverage of the 7 October 2026 policy. Please verify them against the RBI's official statement before using them in your answers. 👉 Subscribe for the next topic in this UPSC Economy series. #UPSC #RBI #RepoRate #MonetaryPolicy #UPSCEconomy #IndianEconomy #upsc #currentaffairs #ssc #railwayexams #currentaffairs2026 #indianrailways #indianeconomy #economy #officer #rrb