India Raises Rates for First Time in Over 3 Years to 5.5% - Seoul Economic Daily

The Reserve Bank of India raised its benchmark interest rate for the first time in three years and eight months to defend against inflation. The RBI's six-member Monetary Policy Committee voted unanimously on the 7th to raise the repo rate, its benchmark, by 25 basis points to 5.50%. It was the central bank's first rate increase since February 2023. India now joins a group of major economies lifting rates to contain inflation and support their currencies. The committee raised its inflation forecast for the current fiscal year, which runs from April 2026 to March 2027, to 5.2% from 5.0%. It also shifted its policy stance to "calibrated tightening" from "neutral," a decision carried by a 4-2 vote.