New Delhi, Oct. 7 -- The Reserve Bank of India (RBI), on Wednesday, 7 October, raised the repo rate by 25 basis points to 5.50%. It is the first rate hike since February 2023, when it raised rates by 25 basis points. The members of the Monetary Policy Committee (MPC) of the central bank voted unanimously to raise rates by 25 bps.

The RBI MPC voted in a 4-2 majority to change the policy stance to "calibrated tightening", underscoring that, given the current situation, rate cuts are not a possibility in the near term. There could be further hikes or a pause on the current interest rates.

The RBI Governor Sanjay Malhotra, in his speech, flagged the threat of inflation, citing that global inflation may increase sharply, prompting global mon...