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

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decided on Wednesday to raise the Repo rate (the rate at which the RBI lends money to banks) by 25 basis points, to 6.5 percent.

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All external benchmark linked loans (based on the Repo rate) are anticipated to increase in price immediately as a result of the RBI decision.

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The next fiscal year's GDP growth is predicted to be 6.4%, according to the RBI.

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According to the MPC, consumer prices will rise 5.3% in FY24.

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Six times since May 2022, the RBI's policy panel has voted to raise the Repo rate, with only Ashima Goyal and Jayanth R. Varma

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The MPC maintained its stance on withdrawal of accommodation by a vote of 4-2 to ensure inflation stays within target going forward

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