RBI hikes repo rate by 25 basis points 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, a move aimed at keeping inflation under check.

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

The six-member Monetary Policy Committee (MPC) headed by RBI Governor Urjit Patel kept its stance at neutral as it sought to contain inflation while not choking growth. Five of the six members on the rate