The repo rate is raised by the RBI by 35 basis points to 6.25%.

The repo rate was raised by the Reserve Bank of India on Wednesday to 6.25% by 35 basis points.

The interest rate at which the central bank loans money to commercial banks is known as the repo rate.

The decision was delivered by RBI Governor Shaktikanta Das following the central bank’s bimonthly monetary policy meeting.

Since May, the repo rate has increased five times. In September, the central bank increased the repo rate by 50 basis points to 5.9%.

The key lending rate was increased on Wednesday by the monetary policy committee, which consists of three members from the Reserve Bank of India and three outside members.

Retail inflation had exceeded the Reserve Bank of India’s authorised upper limit for ten consecutive months up until October. The goal of the central bank is to manage inflation at 2% to 6%.

However, in October, the price rise indicator had fallen to a three-month low of 6.77%. In July, it was 6.71%, 7% in August, and 7.41% in September.