RBI Raises Repo Rate to 5.5%, Shifts to Calibrated Tightening

The Reserve Bank of India raised the repo rate by 25 basis points to 5.5%, its first hike in three years, and changed its stance to calibrated tightening. The move is expected to increase borrowing costs for floating-rate loans, particularly home loans, while fixed deposit rates may stay firm. The RBI also raised its FY27 growth forecast to 7.1% and inflation projection to 5.2%.