New Delhi, Oct. 7 -- The Reserve Bank of India (RBI) raised repo rates by 25 basis points as expected, against the backdrop of elevated crude prices, broadening inflation, and resilient growth, which allows the central bank room to act.

The RBI also changed its stance from neutral to calibrated tightening, reaffirming its commitment to the inflation-targeting mandate. Critically, the RBI revised upwards its inflation projections by 10-20 basis points for the next quarters, with inflation peaking at 6% in Q3FY27, and set the stage for a December hike.

While the governor's statement highlighted growth resilience, as seen in Q1FY27 GDP growth of 7.8% and recent high-frequency data points, the 40-basis-point upward revision to the GDP forec...