RBI raises key rate by 25 bps to 6.50 percent, keeps 'neutral' stance

By Swati Bhat and Suvashree ChoudhuryMUMBAI (Reuters) - The Reserve Bank of India on Wednesday raised interest rates for the second straight meeting, but retained its "neutral" stance as it aimed to contain inflation while not choking growth.The RBI's Monetary Policy Committee (MPC) raised the repo rate by 25 basis points to 6.50 percent.

It is the first time since October 2013 that the rate has been increased at consecutive policy meetings.In June, the MPC also increased the key rate by 25 bps. The rate action was in line with a Reuters poll.

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