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RBI hikes interest rate by 0.25 per cent on inflationary concerns
The 6-member Monetary Policy Committee (MPC) headed by RBI Governor Urjit Patel kept its stance at neutral.
By
migrator
migrator
Mumbai
Reserve Bank of India for the second time in two-month raised interest rate by 0.25 per cent on inflationary concerns.
The central bank in its third bi-monthly policy of the current fiscal raised benchmark repo, or the short term rate at which it lends to other banks, by 0.25 per cent to 6.5 per cent.
The 6-member Monetary Policy Committee (MPC) headed by RBI Governor Urjit Patel kept its stance at neutral.
For July-September, it pegged CPI-based retail inflation at 4.2 per cent which it saw firming up to 4.8 per cent in the second half of the current fiscal.
The projected inflation rate is above its targeted comfort level of 4 per cent.
RBI kept the GDP forecast for the current fiscal unchanged at 7.4 per cent and saw it at 7.5-7.6 per cent in the second half of the current fiscal.
Here are some of the key points of the RBI monetary policy
- RBI hikes key interest rate (repo) by 25 bps to 6.5 per cent.
- It is 2nd consecutive hike in short-term lending rate.
- Consequently, reverse repo rate stands at 6.25 pc.
- New marginal standing facility rate is 6.75 pc.
- Monetary policy stance to remain neutral.
- GDP growth seen at 7.5-7.6 per cent for April-September period;Â
- GDP growth projection retained at 7.4 pc for 2018-19;
- Retail inflation pegged at 4.8 pc for second half of current fiscal;
- 5 MPC members voted in favour of rate hike, one against
- Next 3-day MPC meeting from Oct 3;
- 4th bi-monthly monetary policy statement on Oct 5;
- RBI to make minutes of today's meeting public on Aug 16.
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