RBI Monetary Policy: Repo rate hiked by 25 bps to 6.5%, no change in stance

The Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Wednesday.

That the Monetary Policy Committee (MPC) has decided to hike the key interest rate by 25 basis points, taking the repo rate to 6.5 per cent. The governor said four members of the six-member MPC voted for the increase with immediate effect.

“Based on an assessment of the macroeconomic situation and its outlook, the MPC decided to increase the policy repo rate by 25 basis points to 6.5 per cent, with immediate effect,” he said.

Shaktikanta Das further said that the MPC has decided to maintain its ‘withdrawal of accommodation’ stance to ensure that inflation remains within the target going forward, while also supporting growth.

Governor Das also said the Standing Deposit Facility (SDF) rate will stand revised to 6.25 per cent and the Marginal Standing Facility (MSF) rate will now be 6.75 per cent.