The Reserve Bank of India (RBI) once again increased its key interest rate by 50 bps on June 8, 2022 to target rising inflation.
The repo rate – the rate at which RBI lends to commercial banks – is 4.90%. Last month, the central bank raised the repo rate from a record low of 4% to 4.40%, a first since August 2018 as well as an undetermined move to raise interest by the Monetary Policy Committee (MPC) headed by the RBI governor. The first example is to hold a meeting. rates.
The Fixed Deposit Facility (SDF) rate and the Marginal Standing Facility (MSF) rate have been accordingly increased by the same quantum to 4.65% and 5.15% respectively.
The Monetary Policy Committee (MPC) unanimously voted to raise the rate.