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Reserve Bank of India announces monetary policy

Mumbai: The Reserve Bank of India (RBI) has announced the monetary policy. The apex bank in the country has hiked its key lending rate (repo rate) by 50 basis points. One bps is one-hundredth of a percentage point.

After this hike, the key lending rate has touched its pre-pandemic levels of 5.40%. This is the third increase in a row and the highest since June 2019.

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All the six members of the Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das, unanimously voted for the rate hike.

Repo rate is the rate at which the Reserve Bank of India lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation.

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