The Monetary Policy Committee (MPC) of the Reserve Bank of India, in its bi-monthly review on Wednesday, announced the first rate hike in nearly four years and decided to increase its benchmark repo rate by 25 basis points to 5.5%. The repo rate was last raised in February 2023, when it was increased by 25 basis points to 6.50%.
The move marks the first rate hike under Governor Sanjay Malhotra, who took office in December 2024 and oversaw a series of rate cuts last year. The RBI’s revised stance “underscored that given the current conditions, rate cuts are off the table in the near term, and policy action can only be a hike or a pause, depending on the evolving conditions,” Malhotra said.
