The Reserve Bank of India’s Monetary Policy Committee (MPC) unanimously increased the policy repo rate by 25 bps to 5.50%, while the decision to change the stance from ‘neutral’ to ‘calibrated tightening’ was taken by a 4-2 majority. This marks the first-rate hike since February 2023 and comes against a backdrop of rising domestic inflation, elevated crude oil prices, higher global bond yields and persistent geopolitical uncertainty
