RBI hikes repo 25bp to 5.50%, the first increase in nearly four years — the cut cycle is officially over. The cover was growth: June-quarter GDP came in at 7.8%, 80bp above the RBI's own forecast, and

What happened: The RBI raised its repo rate by 25 basis points to 5.50%, its first hike in nearly four years and a reversal from its rate-cut cycle. Key numbers: Repo rate 5.50%, up 25 bps. First hike since February 2023, when it was 6.6%. June quarter GDP grew 7.8%. Retail inflation rose to 4.82% in August from 4.45% in July. Why it matters: The MPC judged the economy strong enough to absorb moderate tightening while inflation risks build. Economists had widely expected the move, and Goldman Sachs said developments pointed to an earlier start to a more extended tightening cycle.

RBI's first rate hike in nearly four years signals a major policy shift.

RBI's first rate hike in nearly four years signals a major policy shift. — impact context not separately stored; see What changed.