Mumbai, June 3, 2025 — The Reserve Bank of India has raised its benchmark repo rate by 25 basis points in a continued push to tackle the sharp rise in inflation, especially in everyday essentials like food and fuel.
This is the third straight increase in recent months, showing how seriously the central bank is treating the surge in prices. RBI Governor Shaktikanta Das explained that this decision reflects the bank’s mission to protect consumers from the biting effects of inflation, while still supporting economic growth.
For common people, this could mean higher EMIs on loans and costlier borrowing, but financial experts believe it’s a necessary step to ease inflationary pressures in the long run.
“This hike may pinch a bit now, but it will bring long-term price relief,” said a senior analyst at an investment firm.
The RBI also hinted that further rate changes will depend on how inflation behaves in the coming months. With global fuel prices unpredictable and food costs rising locally, policymakers are trying to strike a delicate balance.
