RBI's first hike under Governor Sanjay Malhotra

What happened: The RBI raised its policy rate in its first hike under Governor Sanjay Malhotra, and four of six MPC members voted to shift the stance from neutral to calibrated tightening. Key numbers: FY27 growth forecast raised 40 bps to 7.1%. FY27 inflation projection raised 20 bps. 10-year bond yield settled at 7.24%, up 5 bps. Rupee at 96.84 per dollar. Why it matters: Malhotra said rate cuts are off the table near term, with policy action a hike or a pause. Retail and MSME loans tied to the repo rate will rise immediately. Economists expect further increases of 50 to 75 bps.

RBI's first hike under Governor Sanjay Malhotra signals a policy shift.

RBI's first hike under Governor Sanjay Malhotra signals a policy shift. — impact context not separately stored; see What changed.