<h4>Highlights from the RBI Monetary Policy Committee: The Reserve Bank of India raises the repo rate for the fifth consecutive time, by 35 basis points, to 6.25%.</h4> Although the 35 basis point increase in the repo rate is in line with market expectations, most observers viewed the most recent policy announcement as "hawkish." After consumer price-based inflation fell to a three-month low of 6.77% in October compared to a year earlier, the RBI highlighted slowing price pressures as the reason for the modest rate increase. The central bank's official target for retail inflation is 4%, however, the RBI has the discretion to allow inflation to reach 6% or drop to 2% in any given month. The Reserve Bank of India Governor Shaktikanta Das assured that the worst of inflation is behind and stressed the need for the Indian rupee to find its level. He further added that RBI is ready to inject additional cash through Liquidity Adjustment Facility (LAF) operations if the need arises.

Although the 35 basis point increase in the repo rate is in line with market expectations, most observers viewed the most recent policy announcement as "hawkish."