Mumbai: The Reserve Bank of India (RBI) on Friday hiked repo rate”>rate by 50 basis points to 5.90% in order to control the rising inflation, keeping in line with the aggressive policies of central banks and the volatile markets prevalent across economies. RBI Governor Shaktikanta Das announced the rate”>rate hike today.
In the meeting of the Monetary Policy Committee (MPC) that started on Wednesday, five of the members of the MPC voted to hike the key lending rate”>rate, repo rate”>rate, by 50-basis points (bps). The rate”>rates for the standing deposit facility (SDF) and the marginal standing facility (MGF) were also raised by 50 basis points to 5.65% and 6.15%, respectively.
The central bank had already hiked the key policy rate”>rate by 140 bps since May to 5.4% to cool off domestic retail inflation that has stayed above the RBI’s upper tolerance limit of 6% each month this year. The MPC is responsible for fixing the benchmark interest rate”>rate in India. In the committee, three members are from RBI and three members are from outside.