RBI Raises Repo Rate to 5.50% as Inflation Remains a Concern

The Reserve Bank of India has raised the repo rate to 5.50% amid persistent inflationary pressures in the economy. The standing deposit facility (SDF) rate has been fixed at 5.25 per cent, while the marginal standing facility (MSF) rate and Bank Rate remain at 5.75 per cent.

The rate adjustment reflects the central bank's continued focus on controlling inflation through monetary tightening. The repo rate, at which commercial banks borrow from the RBI, directly influences lending rates and consumer borrowing costs across the financial system.