RBI Hikes Repo Rate to 6.5% | CORPORATE ETHOS

RBI Hikes Repo Rate to 6.5%

By: | August 1, 2018
RBI

Aug 1: The Reserve Bank of India on Wednesday raised the policy repo rate from 6.25% to 6.5% and consequently the reverse repo rate under the liquidity adjustment facility has risen to 6.25% and Bank Rate to 6.75 %.

The decision of the Monetary Policy Committee (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, according to RBI.

RBI also raised the inflation projection to 4.6 per cent in second quarter of fiscal 2019, 4.8 per cent in second half of 2018-19 and 5 per cent in first quarter of 2019-20. In June, RBI had projected consumer inflation at 4.8-4.9 per cent in the first half and 4.7 per cent in the second half of 2018-19.