RBI Raises Interest Rates by 25 Basis Points Amid Inflation Concerns

The Reserve Bank of India (RBI) increased its benchmark interest rate by 25 basis points to 6.75% today, citing persistent inflationary pressures. This marks the third consecutive rate hike since December 2025. RBI Governor emphasized the need to balance growth with price stability, as consumer inflation remains above the 6% target. According to Bloomberg, this move is expected to tighten borrowing costs for businesses and consumers, potentially slowing credit growth in the short term. Markets reacted with volatility following the announcement.