RBI MPC Raises Repo Rate By 25 Basis Points To 5.5% Amid Inflation Risks

The Reserve Bank of India Monetary Policy Committee unanimously raised the repo rate by 25 basis points to 5.5 percent at its October 5-7 meeting, citing widening inflationary pressures.

External members Nagesh Kumar and Ram Singh dissented against shifting the policy stance from neutral to calibrated tightening, warning of extended rate hike cycles.

Governor Sanjay Malhotra projected headline consumer price inflation to touch the upper tolerance band of 6 percent in the third quarter.