<h1>RBI's Monetary Policy Committee raises repo rate to 6.25% amid rising inflation and oil prices, supports growth.</h1> The Monetary Policy Committee (MPC) of the Reserve Bank of India held its meeting from June 4-6, 2018, deciding to increase the policy repo rate by 25 basis points to 6.25%. This decision aligns with the objective of maintaining consumer price index (CPI) inflation at 4% within a band of +/- 2% while supporting growth. The MPC noted a rise in inflation expectations and pressures from increased crude oil prices. Economic growth in India showed signs of recovery, with GDP growth at 7.7% in Q4 of 2017-18. The committee voted unanimously for the rate hike, maintaining a neutral policy stance.