RBI increases repo rate by 25 bps to 6.5%

RBIBy Rohit Sharma

NEW DELHI

Reserve Bank of India (RBI’s) monetary Policy committee (MPC) on Wednesday increased repo rate by 25 basis points (bps)  to 6.5 per cent. This is the second time where RBI has raised the repo rate. In June it increased by 25 bps which come to 6.25 per cent.

Consequently, the reverse repo rate under is been raised to 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.75 per cent. Whereas in June the reverse repo rate was 6 per cent.

The decision of the MPC is consistent with the neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent while supporting growth, the statement said.





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