The MPC, the Reserve Bank of Indias monetary policy committee, has hiked the policy repo rate by 35 basis points (bps) to 6.25 percent with immediate effect . Five out of six MPC members voted to allow a hike in the repo rate .
Mumbai (Maharashtra) (India) – (Maharashtra) – On December 7, the MPC, the Reserve Bank of India's monetary policy committee, has hiked the policy repo rate by 35 basis points (bps) to 6.25 percent with immediate effect.Five out of six MPC members voted to allow a hike in the repo rate, the rate at which the RBI lends money to all commercial banks, during the meeting, according to RBI Governor Shaktikanta Das, who announced this today.This was the central bank's fifth rate hike in a row, after a hike in October, 40 bps in May, and 50 bps in June, August, and September.To cool off domestic retail inflation, which has stayed above the RBI's upper tolerance threshold for more than three quarters, the central bank had been raising the key policy rate to 6.25 percent since May.
The RBI's flexible inflation targeting policy framework was implemented in 2016 and the out-of-turn meeting was held in early November to address and draft the RBI's inflation targeting report for the central bank that has failed to fulfill its inflation targeting scheme.