The Reserve Bank of India’s Monetary Policy Committee (MPC) on Wednesday raised the repo rate by 25 basis points to 5.50%, its first rate hike in nearly four years, as rising oil prices amid US-Iran tensions and a weak monsoon threaten to push inflation higher.
The six-member rate panel voted unanimously in favour of the rate hike. The committee changed its policy stance to calibrated tightening from neutral, signaling further rate hikes may be on the table.
