RBI hikes policy repo rate by 50 basis points

The Reserve Bank of India’s key interest rate was raised by 50 basis points in the second hike in as many months, in a bid to cool persistently high inflation. The monetary policy committee (MPC) raised the key lending rate or the repo rate by 50 basis points (bps) to 4.90%.

The Standing Deposit Facility rate and the Marginal Standing Facility Rate were adjusted higher by the same quantum to 4.65% and 5.15%, respectively. RBI Governor Shaktikanta Das had said a June 8 move was a no brainer. But analysts polled by Reuters had been divided over how much it would hike, with forecasts ranging between 25 and 75 bps.

0

0