As stated by the RBI Governor today in the Monetary Policy Statement, the Reserve Bank of India (RBI) increased the repo rate by 0.35 percent basis points, raising it to 6.25 percent, for the fifth consecutive time.

• According to the Monetary Policy Committee (MPC) of the RBI, additional, calibrated monetary policy action is required to anchor inflation expectations, end core inflation’s persistence, and control second-round effects. In the medium term, these actions will improve the growth prospects for the Indian economy.
• Accordingly, the MPC of the RBI has decided to raise the repo rate by 0.35 percentage points, making it 6.25 percent, effective right away. The repo rate has increased by 2.25 percentage points by the RBI since May 2022.