RBI Raises Repo Rate by 25 bps to 5.5% in First Hike in Four Years

The Reserve Bank of India’s Monetary Policy Committee unanimously raised the repo rate by 25 basis points to 5.5% from 5.25% on Wednesday, marking its first rate hike in four years.

Governor Sanjay Malhotra stated that near-term rate cuts are unlikely under current economic conditions, indicating the next policy action will be either a rate hike or a pause.

Following the announcement, benchmark indices recovered partially, with the Sensex recovering around 450 points to touch an intraday high of 72,969.57 and Nifty reaching 22,701.60.