Full text: RBI hikes repo rate by 25 bps to 6.50% amid inflation concerns

This was the first time since October 2013 that the central bank has hiked repo at two consecutive policy meetings

The Reserve Bank of India (RBI) increased its key repo rate by 25 basis points to a two-year high of 6.50 per cent on Wednesday, in a move that is seen as an attempt to keep inflation under check.

This was the first time since October 2013 that the central bank hiked repo rate --- the rate at which the RBI lends to commercial banks --- at two consecutive policy meetings.

In June, the repo rate was raised for the first time in over four years, by 25 basis points to 6.25 per cent. One basis point is one hundredth of a