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 rate 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 immediately 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 Jayanth R. Varma

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