India's central bank raises interest rates for the first time in nearly four years.

India's central bank raised interest rates for the first time in nearly four years. Driven by rising inflation and a depreciating currency, policymakers shifted to a tightening stance, with India joining other central banks in the region in raising rates. India's six-member monetary policy committee voted unanimously to raise the benchmark repurchase rate by 25 basis points to 5.50%. This is the first rate hike since Sanjay Malhotra took office as governor in December 2024. A majority of economists surveyed by the media had anticipated the move. The monetary policy stance was changed from neutral to "calibrated tightening," signaling possible further rate increases ahead.