Kathmandu. The Reserve Bank of India (RBI) has increased the repo rate. The Reserve Bank of India (RBI) has increased the policy interest rate by 25 basis points to 5.5 percent.
The decision is aimed at controlling rising inflation and maintaining price stability in the economy amid global and geopolitical uncertainties.
According to RBI Governor Sanjay Malhotra, all the members of the Monetary Policy Committee have unanimously decided in favor of increasing the repo rate. Earlier, in February 2023, the repo rate was increased from 6.25 percent to 6.50 percent.
With this, the Monetary Policy Committee has changed its policy stance from ‘neutral’ to ‘calibrated tightening’. The RBI has projected real GDP growth at 7.1 per cent for the current financial year and raised the inflation forecast to 5.2 per cent from 5.1 per cent.
India’s retail inflation stood at 4.82 per cent in August.
