Much needed policy adjustment

The Reserve Bank of India raised the repo rate by 25 basis points and changed its stance from 'neutral' to 'calibrated tightening' due to rising core and headline inflation and supply-side pressures from weak monsoons. Inflation forecasts for FY27 have been increased while growth forecasts have also been revised upward, enabling further rate hikes without major growth concerns.

This Wire brief sits within Fusion42's coverage of Banking Infrastructure.