RBI raises repo rate by 25 bps to 6.50 per cent

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.