RBI MPC raises repo rate 25 bps to 5.5%
In short
The Reserve Bank of India raised the repo rate by 25 basis points to 5.5%.
The move was the first increase since February 2023. The report also says FY27 growth was raised to 7.1% and CPI inflation to 5.2%, but it does not say how homes, loans, or markets will respond.
What the reporting says
The Reserve Bank of India’s Monetary Policy Committee raised the repo rate by 25 basis points to 5.5%, with Governor Sanjay Malhotra announcing the decision. The reporting also says this was the first increase since February 2023 and that the FY27 growth forecast was raised to 7.1%, while CPI inflation was revised up to 5.2% because of rising food and fuel prices. It is not stated how borrowers or markets will react.
Why it matters
The RBI's rate hike to 5.5% is aimed at inflation containment, according to the reporting, and comes with a higher FY27 growth forecast and a CPI inflation projection of 5.2%. That affects borrowers, savers and lenders through lending costs and deposit returns. The source does not say how quickly the new stance will affect prices or credit demand.