The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) began its 3-day meeting on Monday amid growing expectations of the first interest rate hike since 2023.
The RBI maintained the repo rate at 5.25% for four consecutive policy meetings and cut rates by a cumulative 125 basis points in 2025. However, the bank is expected to shift towards monetary tightening amid rising inflationary risks and elevated crude oil prices.