Mumbai: Reserve Bank of India (RBI) governor Shaktikanta Das has announced the decisions taken by Monetary Policy Committee meeting. The apex bank in the country has increased repo rate by a half percent to 5.9%.
Repo rate is the key interest rate at which the RBI lends short-term funds to commercial banks. Repo rate is used by monetary authorities to control inflation.
This is the 4th consecutive increase in the repo rate. The RBI has raised the repo rate by 190 basis points since May. This is also the third 50 basis points rate hike in a row by the RBI.
RBI also adjusted the Standing Deposit Facility to 5.65% and Marginal Standing Facility and Bank rate to 6.15%.