RBI raises key rate 25 bps to 6.50 percent, holds stance at neutral

MUMBAI (Reuters) – The Reserve Bank of India on Wednesday raised its policy repo rate as expected for the second straight meeting, citing inflation concerns but retained its “neutral” stance.

The monetary policy committee raised the repo rate by 25 basis points to 6.50 percent, in line with predictions by 37 of 63 economists in a Reuters poll last week.

Five of the six members on the rate panel voted for a rate increase.

The reverse repo rate was also raised by 25 basis points, to 6.25 percent.