The Reserve Bank of India raised the repo rate by 25 basis points to 5.5 percent, its first hike since February 2023, and shifted its stance to "calibrated tightening." Retail and MSME loans linked to external benchmarks will become costlier immediately. Governor Sanjay Malhotra said rate cuts are off the table near term, with inflation projected near 5.8 percent over the next three quarters.
RBI Raises Repo Rate 25 bps to 5.5%, EMIs to Rise
Source: Business Standard