<h1>RBI Raises Repo Rate by 25 Basis Points to 7.50% to Combat Rising Inflation and Stabilize Prices.</h1> The Reserve Bank of India (RBI) has increased the repo rate by 25 basis points, raising it from 7.25% to 7.50%, to create an interest rate environment aimed at moderating inflation and managing inflationary expectations. The Union Finance Minister indicated that this move was anticipated, given the rise in core inflation to 8.71% in May 2011 from 7.93% in April 2011. The adjustment is intended to enhance price stability, which is crucial for sustaining medium-term economic growth.