Economic Buzz: India joins major central banks as RBI hikes repo rate by 25 bps

The Reserve Bank of India (RBI) hiked repo rate by 25 basis points or 0.25% on Wednesday, marking the first rise in nearly four years amid mounting inflation and strong economic growth. This is the first hike in repo rate, the rate at which the central bank lends to other banks, since February 2023. This comes amid rising inflation higher oil prices, and a weaker rupee. The central bank also signalled further rate hikes by changing its stance from neutral to calibrated tightening, but Governor Sanjay Malhotra said the extent and timing of any more increases would be contingent on actual inflation and growth outcomes.

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