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RBI raises repo rate 25 bps to 5.5%, first hike since February 2023, as inflation risks broaden
RBI said CPI inflation rose to 4.8 per cent in August, with food price pressure becoming broader. It flagged El Niño risk to rural demand, while urban demand is seen supported. The MPC also shifted its stance to calibrated tightening.
The numbers
Figures from Business Standard,
| Average CPI inflation over next three quarters: | nearly 5.8 per cent |
|---|---|
| Core inflation in August: | 4.2 per cent |
| FY27 real GDP growth projection: | 7.1 per cent |
| Q1 real GDP growth: | 7.8 per cent |
| Account Aggregator interoperability deadline: | December 31, 2026 |
Why it matters to operators and investors
A repo rate of 5.5% and inflation risks that RBI sees broadening mean higher financing costs and hurdle rates for deals, so prioritise cash-generative, urban-weighted targets and test valuations against a tighter rate path.