India's Central Bank Hikes Repo Rate by 25 Bps

• RBI hiked the policy repo rate by 25 basis points to 5.5%.
• The Monetary Policy Committee (MPC) adopted a stance of 'calibrated tightening'.
• Rate cuts are 'off the table' in the near term, with future policy dependent on growth and inflation outlook.
• CPI inflation is projected at 5.2% for the current year, and 5.6% for Q1 next year.

The Reserve Bank of India (RBI) unanimously voted to increase the policy repo rate by 25 basis points to 5.5% and adopted a stance of 'calibrated tightening'. Governor Sanjay Malhotra stated that rate cuts are off the table in the near term, with future policy contingent on growth, inflation developments, and underlying price pressures. CPI inflation for the current year is projected at 5.2%, with Q1 next year at 5.6%.