Rising inflation prompts first RBI hike since 2023
Bank announces shift to calibrated tightening, with near-term rate cuts ‘off the table’
The Reserve Bank of India today (October 7) increased its key policy rate by 25 basis points to 5.5%. The decision, which the RBI said had been taken against the backdrop of the “sudden reescalation” of conflict in the Middle East, was unanimous, and marks the central bank’s first rate hike since February 2023.
In its statement, the RBI’s governor Sanjay Malhotra said the bank’s monetary policy committee had decided to change its stance to one of calibrated tightening. Rate cuts were “off the
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