Punjab, Oct. 7 -- The RBI raised the repo rate by 25 basis points to 5.50% - unanimously - and changed its stance from neutral to "calibrated tightening". It is the first increase since February 2023, and the first under Governor Sanjay Malhotra.
The sentence that matters most
Malhotra said future policy action can only be a hike or a pause, depending on how growth and inflation evolve.
That removes an option. A central bank that says cuts are off the table is telling borrowers and bond markets that the floor has moved, not that one meeting went a certain way.
"Calibrated tightening" is the formal version of the same thing. It is not "we may tighten" - it is "we are tightening, at a pace we choose".
Where the rate has been
The RBI cut...