In line with expectations, the Reserve Bank of India (RBI) has raised the repo rate by 25 basis points to 5.50 per cent, marking the first increase in the benchmark rate since February 2023.
The RBI had kept the repo rate unchanged at 5.25 per cent for the past four policy reviews after cutting it by a cumulative 125 basis points in 2025.
The rate hike comes amid rising retail inflation and elevated crude oil prices. The six-member Monetary Policy Committee has shifted its policy stance towards calibrated tightening.
