Why RBI hiked repo rate by 25 basis points to 5.5% in the MPC review

 Two factors worked to decide MPC’s move: inflationary pressures persist and growth is beating estimates. Hence, a hike in repo rate, while helping keep inflation in check, is unlikely to substantially impact GDP growth. The Indian economy has remained robust, with growth momentum spread across various segments. The committee expects the economy to retain its resilience. Two factors worked to decide MPC’s move: inflationary pressures persist and growth is beating estimates. Hence, a hike in repo rate, while helping keep inflation in check, is unlikely to substantially impact GDP growth. The Indian economy has remained robust, with growth momentum spread across various segments. The committee expects the economy to retain its resilience.