The Reserve Bank of India (RBI) raised the repo rate for the first time since February 2023 and shifted its policy stance towards calibrated tightening due to concerns over rising retail inflation and elevated crude oil prices.
The Reserve Bank of India (RBI) announced a 25 basis point increase in the repo rate to 5.50% today, marking the first change in the benchmark rate since February 2023. This move follows a period of four consecutive policy reviews where the RBI kept the repo rate unchanged at 5.25%, after reducing it by a total of 125 basis points in 2025.
The six-member Monetary Policy Committee, which had kept the repo rate steady for the past four policy reviews, has now shifted its policy stance towards calibrated tightening. This decision was likely made due to concerns over rising retail inflation and elevated crude oil prices.
The RBI had cut the repo rate by 1.25% in February 2023, then reduced it further by 50 basis points each in April, June, and August 2023. The most recent policy review took place on November 4, 2023.
Source:
Akashvani News
