RBI Hikes Repo Rate By 25 Bps To 6.5%
In an effort to slow consumer price inflation, the Reserve Bank of India's Monetary Policy Committee
decided on Wednesday to raise the Repo rate (the r
ate at which the RBI lends money to banks) by 25 basis points, to 6.5 percent.
All external benchmark linked loans (based on the Repo rate) are anticipated to increase in price immediate
ly as a result of the RBI decision.
The next fiscal year's GDP growth is predicted to be 6.4%, according to the RBI.
According to the MPC, consumer prices will rise 5.3% in FY24
Six times since May 2022, the RBI's policy panel has voted to raise the Repo rate, with only Ashima Goyal and Ja
yanth R. Varma
The MPC maintained its stance on withdrawal of accommodation by a vote of 4-2 to ensur
e inflation stays within target going forward