The Reserve Bank of India (RBI) has raised the country’s policy rate by 25 basis points (bps) in its last policy review of 2022-23 amid inflation. The Monetary Policy Committee increased the repo rate, or the key rate at which the RBI lends short-term funds to commercial banks, to 6.5 per cent from 6.25 per cent. The key rate has now been raised by 250 (225+25) bps since May 2022. With this, the repo rate has been hiked for the sixth time in a row.