RBI hikes repo rate by 25 basis points to 6.5 pc
RBI increases repo rate: The Monetary Policy Committee (MPC) of the Reserve Bank of India decided to raise the key benchmark interest rate by 25 basis points to 6.5 per cent.
RBI Governor Shaktikanta Das stated that, “Four out of six members of MPC have decided to go ahead with this hike in the repo rate.”
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Shaktikanta Das-headed Monetary Policy Committee (MPC) started its three-day meeting on February 6 amid the rate hiking spree that started in May last year to check inflation.
Meanwhile, EMIs rate and home loans are likely to go up and with retail inflation showing signs of moderation and remaining below the Reserve Bank of India's 6 per cent upper tolerance level, and projected slowdown in gross domestic product (GDP) growth in the next fiscal starting April.
Earlier, in December, the central bank raised the key benchmark interest rate (repo) by 35 basis points (bps) after delivering three back-to-back increases of 50 bps.
RBI has increased the short-term lending rate by 225 basis points to contain inflation, mostly driven by external factors, especially global supply chain disruption following the Russia-Ukraine war outbreak.
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- With inputs from agencies