RBI Increases Repo Rate to 6.5%

The Reserve Bank of India (RBI) has increased the repo rate by 25 basis points to 6.5% in its latest monetary policy review. This move is aimed at controlling inflation, which has been above the RBI's target range of 2-6% for several months. The increase in repo rate will make borrowing more expensive for consumers and businesses, which could help reduce demand and bring down prices. The RBI has also increased the cash reserve ratio (CRR) by 25 basis points to 4.5%. The new rates will be effective from August 12, 2026.