The Reserve Bank of India raised its benchmark repo rate by 25 basis points to 5.50% on 7 October, according to Reuters and PTI reporting. The six-member Monetary Policy Committee voted unanimously for the increase, its first rate rise since February 2023.
The committee also changed its policy stance from neutral to calibrated tightening. Reports identified rising energy costs, food-price pressures and strong domestic growth as part of the setting for the decision.
Governor Sanjay Malhotra said the timing and extent of further increases would depend on inflation and growth developments. Economists quoted after the decision differed over the path of later increases. Their predictions describe possible future policy, while the announced change at the October meeting was a quarter of a percentage point.