India's central bank has raised interest rates for the first time in nearly four years.

Driven by rising inflation and a weakening local currency, policymakers shifted toward a tightening stance, with India joining other central banks in the region in taking rate hike action.

India's six-member monetary policy committee unanimously approved a resolution to raise the benchmark repurchase rate by 25 basis points to 5.50%.

This marks the first rate hike since Sanjay Malhotra took office as governor in December 2024.

A majority of economists surveyed by the media had anticipated this move.

The monetary policy stance was adjusted from neutral to "calibrated tightening," signaling that further rate hikes may follow.