<h1>RBI's MPC Raises Repo Rate by 25 Basis Points to 6.5% to Tackle Inflation and Support Growth.</h1> The Monetary Policy Committee (MPC) of the Reserve Bank of India decided to increase the policy repo rate by 25 basis points to 6.5%, with corresponding adjustments to the reverse repo rate and the marginal standing facility rate. This decision aligns with the objective of maintaining a medium-term consumer price index (CPI) inflation target of 4%, while supporting economic growth. Global economic activity remains uneven, with risks from trade tensions and volatile crude oil prices. Domestic economic indicators show strong growth, though inflationary pressures persist due to factors like increased minimum support prices for crops and volatile oil prices. The MPC emphasizes monitoring inflation and global developments, particularly trade protectionism and geopolitical tensions.