RBI raises repo rate by 25 basis points to 5.50%
The Reserve Bank of India raised the policy repo rate by 25 basis points to 5.50%. This was reportedly the first repo-rate increase since February 2023. The central bank cited renewed inflationary pressures, including higher oil prices. The decision is expected to increase borrowing costs for home, personal and other floating-rate loans. The move signals a greater focus on price stability while maintaining attention to economic growth. The decision is important for understanding the transmission of monetary policy to banks and consumers.
Try the question
Which institution determines India’s policy repo rate?
Answer: (b) Reserve Bank of India
The correct answer is (b) Reserve Bank of India.