RBI hikes repo rate by 50 basis points to 5.40 per cent with immediate effect

Reserve Bank of India

The Reserve Bank of India (RBI) on Friday hiked the repo rate by 50 basis points (bps) to 5.40 per cent with immediate effect, RBI Governor Shaktikanta Das said.

Earlier this year, the RBI had raised the repo rate - by 40 basis points (bps) in May and 50 bps in June. Today's hike takes the repo rate above pre-pandemic levels of 5.15 per cent.

Also read: Gradual rise in inflation in second half: RBI Governor

"Monetary Policy Committee (MPC) Takes unanimous decision to raise benchmark lending rate by 50 bps to 5.40 per cent," said the RBI Governor.

In addition to this, Das said that the Indian economy has been grappling with high inflation and added that India has been facing a USD 13.3 billion capital outflow in the last few months.

"Inflation projection for FY23 retained at 6.7 per cent on assumption of normal monsoon and crude oil at USD 105/barrel," said Das.

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