A monetary policy shift occurred, marked by a rise in the repo rate to 5.50%. This change follows a period of over three years without an increase. The growth forecast has been upgraded to 7.1% for FY27.

The decision to hike the rate was unanimous among the six-member committee. The governor has indicated that near-term cuts are not possible, with the next move being either a hike or a pause.

The reason for this shift is attributed to several factors, including concerns about inflation. Further details about this development are available from the source.