RBI opts for smaller repo rate hike of 35 bps, hints at more to come

Main risk is core inflation remaining sticky: Governor

The six-member monetary policy committee (MPC) of the Reserve Bank of India (RBI) on Wednesday increased the policy repo rate by 35 basis points (bps) to 6.25 per cent, the highest level since February 2019. With this, the repo rate has been increased by 225 bps since May.
 

The increase was lower than the three previous ones, but the MPC hinted at the possibility of further hikes as it refused to lower its guard against inflation.
 

RBI Governor Shaktikanta Das cautioned that “the battle against inflation is not over”, while acknowledging that it was expected to moderate.
 

Average inflation has