RBI hikes the key REPO rate by 25 bps

Reserve Bank of India

 

 

Reserve Bank of India (RBI) has continued with its Hawkish policy stance by increasing its repo rate by 25 bps, with the increase-repo rate (The rate at which Central bank lends to commercial banks and Financial Institutions in India) has become 6.5%.

With the ease in headline inflation, core inflation at around 6% remains a concern for MPC(Monetary Policy Committee).Along the stance RBI has focused on ”withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth”.

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 RBI projected the GDP growth of 6.4% in the current year with the expected retail  inflation at 5.3% through the year 2023-24.