RBI raises repo rate to 5.5% in first hike under Governor Sanjay Malhotra, shifts stance to ‘calibrated tightening’

The RBI raised its benchmark repo rate by 25 basis points to 5.5%, its first hike since February 2023, and shifted its policy stance to ‘calibrated tightening’. The move came as the central bank raised its FY27 growth forecast to 7.1% while warning that inflation and its outlook were no longer benign.