RBI raises rates for the first time since 2023, shifts to calibrated tightening
🏦 The Reserve Bank of India raised the repo rate by 25 basis points to 5.50%, marking its first hike since February 2023 after a total of 125 basis points in cuts during 2025.
📊 The rate decision was approved unanimously by a 6–0 vote, but the shift from a neutral stance to “calibrated tightening” was not unanimous, with two members preferring to retain the previous stance.
📈 The RBI raised its fiscal-year inflation forecast to 5.2% from 5.0%, while also upgrading GDP growth to 7.1% from 6.7%, suggesting policymakers believe the economy can absorb a modest tightening step.
💱 Following the decision, the 10-year government bond yield rose to around 7.27%, the rupee weakened to about 96.78 per dollar, while the Sensex fell 0.59% and the Nifty declined 0.76%. The new stance does not necessarily signal the start of a prolonged rate-hike cycle.
#India $UMA
🏦 The Reserve Bank of India raised the repo rate by 25 basis points to 5.50%, marking its first hike since February 2023 after a total of 125 basis points in cuts during 2025.
📊 The rate decision was approved unanimously by a 6–0 vote, but the shift from a neutral stance to “calibrated tightening” was not unanimous, with two members preferring to retain the previous stance.
📈 The RBI raised its fiscal-year inflation forecast to 5.2% from 5.0%, while also upgrading GDP growth to 7.1% from 6.7%, suggesting policymakers believe the economy can absorb a modest tightening step.
💱 Following the decision, the 10-year government bond yield rose to around 7.27%, the rupee weakened to about 96.78 per dollar, while the Sensex fell 0.59% and the Nifty declined 0.76%. The new stance does not necessarily signal the start of a prolonged rate-hike cycle.
#India $UMA