RBI increases repo rate by 50 basis points
Reserve Bank of India (RBI) once again increased its key interest rate by 50 bps on June 8, 2022, in a bid to target rising inflation.
The repo rate — the rate at which RBI lends to commercial banks — stands at 4.90%. Last month the central bank hiked the repo rate to 4.40% from a record low of 4% is the first since August 2018 as well as the first instance of the RBI governor-headed monetary policy committee (MPC) holding an unscheduled meeting for raising interest rates.
The Standing Deposit Facility (SDF) rate and the Marginal Standing Facility (MSF) rate have been accordingly adjusted higher by the same quantum to 4.65% and 5.15%, respectively.
The monetary policy committee (MPC) voted unanimously to increase rate.