India, Oct. 7 -- The Reserve Bank of India (RBI) has increased the policy repo rate by 25 basis points to 5.50%, marking its first rate hike in nearly four years. The decision was taken at the Monetary Policy Committee's October meeting held from October 5 to 7.

Along with the rate increase, the RBI MPC changed its policy stance from neutral to calibrated tightening, signalling a stronger focus on managing rising inflationary pressures. RBI Governor Sanjay Malhotra said the inflation outlook had become less favourable compared with the previous year, although domestic economic activity continued to show resilience.

Here are five major takeaways from the RBI MPC decision.

1. Repo rate increased to 5.50%

The MPC unanimously voted to rai...