The Bank of India raised interest rates for the first time in nearly four years. Affected by higher inflation and depreciation of the local currency, policymakers turned to a tighter position, and India joined other central banks in the region to raise interest rates. The Bank of India's six-member monetary policy committee passed a full vote to raise the benchmark repurchase rate by 25 basis points to 5.50%. This is the first rate hike since Sanjay Malhotra took office as governor in December 2024. Most economists surveyed by the media had previously predicted the move. The monetary policy position was adjusted from neutral to “calibrated tightening,” signaling subsequent or continuing interest rate hikes.

The Bank of India raised interest rates for the first time in nearly four years. Affected by higher inflation and depreciation of the local currency, policymakers turned to a tighter position, and India joined other central banks in the region to raise interest rates. The Bank of India's six-member monetary policy committee passed a full vote to raise the benchmark repurchase rate by 25 basis points to 5.50%. This is the first rate hike since Sanjay Malhotra took office as governor in December 2024. Most economists surveyed by the media had previously predicted the move. The monetary policy position was adjusted from neutral to “calibrated tightening,” signaling subsequent or continuing interest rate hikes.