RBI raises repo rate by 25 basis points to 5.5% amid rising inflation

What happened: The Reserve Bank of India raised the repo rate by 25 basis points to 5.5%, its first hike in nearly four years, and shifted its stance to "calibrated tightening" from "neutral". Key numbers: Repo rate 5.5%, up 25 basis points. Prior hike February 2023 to 6.5%. December cut from 5.5% to 5.25%. Why it matters: Governor Sanjay Malhotra said inflation and its outlook were no longer as benign as last year. The stance shift signals the central bank is now more focused on containing inflation, even as it raised its growth forecast.

The Reserve Bank of India raised the repo rate by 25 basis points to 5.5%, its first hike in nearly four years, and shifted its stance to "calibrated tightening" from "neutral".

Governor Sanjay Malhotra said inflation and its outlook were no longer as benign as last year. The stance shift signals the central bank is now more focused on containing inflation, even as it raised its growth forecast.