< Back to all clusters
[BUSINESS] · India · 40 sources

started · updated

Reserve Bank of India raises repo rate to 5.50%

The Reserve Bank of India (RBI) has raised its benchmark repo rate by 25 basis points to 5.50 per cent, marking its first increase since February 2023. The decision, made by the six-member Monetary Policy Committee (MPC), also includes raising the Standing Deposit Facility (SDF) rate to 5.25 per cent and adjusting the Marginal Standing Facility (MSF) and bank rate to 5.75 per cent.

Governor Sanjay Malhotra stated that the inflation outlook is no longer benign, citing rising food and energy prices, alongside supply-side risks such as El Niño and geopolitical tensions in West Asia. Retail inflation (CPI) rose to 4.82 per cent in August. Consequently, the MPC shifted its policy stance from 'neutral' to 'calibrated tightening'.

Despite inflationary concerns, the RBI raised its FY27 GDP growth projection to 7.1 per cent from 6.7 per cent, reflecting resilient domestic economic activity. The rate hike is expected to increase borrowing costs for consumers and businesses, potentially impacting home, car, and personal loans.

Entities

Federal Reserve · Federal Reserve Bank of San Francisco · India · Mary Daly · Monetary Policy Committee · Reserve Bank of India · Sanjay Malhotra

Claims

What the coverage asserts, and how many sources carry each claim.

Sources