<h1>RBI's MPC Hikes Repo Rate to 6.5% Amid Inflation Concerns and Global Trade Tensions.</h1> The Monetary Policy Committee (MPC) of the Reserve Bank of India, during its meeting from July 30 to August 1, 2018, decided to increase the policy repo rate by 25 basis points to 6.5%. This decision aligns with the objective of maintaining consumer price index (CPI) inflation at 4% within a band of +/- 2% while supporting economic growth. The MPC noted global economic activity, uneven growth, and rising trade tensions. Domestically, inflation rose to 5% in June, driven by fuel and non-food items, while food inflation remained muted. The decision was supported by most MPC members, except one who voted against it.