The Reserve Bank of India has increased the repo rate by 25 basis points to 5.50 percent, marking the first rise in the benchmark interest rate since February 2023.
The repo rate had remained unchanged at 5.25 percent through the previous four policy reviews. This followed a cumulative reduction of 125 basis points during 2025.
The latest increase comes as retail inflation rises and crude oil prices remain elevated. The six member Monetary Policy Committee has also moved its policy approach towards calibrated tightening.