Summary of this article
RBI raises repo rate 25 bps to 5.5%, ending its easing cycle.
MPC shifts stance to “calibrated tightening”, ruling out near-term rate cuts.
RBI projects 5.2% inflation and 7.1% GDP growth for the year.
The Reserve Bank of India (RBI) on Wednesday raised its policy repo rate by 25 basis points to 5.5%, marking the first rate hike by the central bank in more than three-and-a-half years as persistent inflation risks and global supply pressures prompt a shift towards tighter monetary policy.
The decision was taken unanimously by the six-member Monetary Policy Committee (MPC) after its three-day meeting. The last time the RBI raised policy rates was in February 2023.
