RBI hikes repo rate by 25 basis points to 5.50%, first increase in nearly four years

The Reserve Bank of India has increased the repo rate by 25 basis points to 5.50%, marking its first rate hike in nearly four years. The decision comes as mounting inflation pressures, driven by rising oil prices, weak monsoon conditions, and a depreciating rupee, threaten economic stability.

Economists had widely anticipated the move. The rate hike signals the RBI's commitment to controlling inflation and managing monetary policy amid challenging external conditions.