The Monetary Policy Committee (MPC) of the RBI on Monday voted to increase repo rate by 40 basis points to 4.40 per cent with immediate effect.
Shaktikanta Das, Governor, Reserve Bank of India (RBI), said, “The MPC has continued with the accommodative policy stance while deciding to continue focusing on calibrated withdrawal of liquidity accommodation.”
Following the hike in the repo rate, the standing deposit facility (SDF) rate stands adjusted to 4.15 per cent and the marginal standing facility rate (MSF) to 4.65 per cent.
Moreover, the cash reserve ratio has also been hiked by 50 basis points from 4 per cent to 4.50 per cent with effect from May 21.
The MPC held an off-cycle meeting between May 2 and 4 to decide on hiking the repo rate amid inflation concern.