RBI raises policy repo rate to 5.5% and adopts calibrated tightening
Quick dive
- The Monetary Policy Committee raised the policy repo rate by 25 basis points to 5.5%.
- The RBI shifted its stance from neutral to calibrated tightening, signalling that near-term rate cuts are off the table.
- Following the corridor adjustment, the standing deposit facility rate is 5.25% while the marginal standing facility and bank rates are 5.75%.
- The decision followed four meetings at which the rate, cut to 5.25% in December 2025, had been held unchanged.
- exam_relevance: tests the exact 25-basis-point repo move, the stance change and the asymmetric LAF corridor; UPSC Prelims 2020 asked the purpose of the marginal standing facility and Standing Deposit Facility-type liquidity instruments, making the current corridor configuration a concrete testable update.
Full explanation
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