RBI hikes repo rate by 25 basis points to 6.5%; FY24 GDP growth pegged at 6.4%

New Delhi, 8/2: The Reserve Bank of India’s key repo rate was raised by 25 basis points (bps) to 6.5 per cent on Wednesday as widely expected, the sixth straight increase, as core inflation remained high despite signs retail inflation has peaked.

The central bank said that its policy stance remains focused on withdrawal of accomodation.

The Reserve Bank of India projected GDP growth at 6.4 per cent for 2023-24.

It expects retail inflation to average 6.5 per cent for 2022-23 and 5.3 per cent for next fiscal.