The Reserve Bank of India on Wednesday announced a hike in the repo rate by 50 basis points to 4.90 per cent. While the inflation rate has been projected at 6.7 per cent for the financial year 2022-23, the RBI remains hopeful that the economy will grow at 7.2 per cent in the current fiscal. The decisions were announced by RBI Governor Shaktikanta Das after three-day deliberations of the Monetary Policy Committee (MPC).

Last month, the MPC raised the key policy rate (repo) by 40 basis points to 4.4 per cent to tame the rising inflation. It was the first rate hike since August 2018.

Repo rate or repurchasing option' rate is the rate at which the RBI lends money to commercial banks. The repo rate is considered as an important tool to control inflation.

#RBI #RepoRate #Inflation #BusinessToday #IndiaToday

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