RBI hikes Repo Rate for the 1st time in over 4 years by 25 bps to 6.25%
Reserve Bank of India hikes Repo Rate by 25 bps to 6.25%. Reverse Repo rate at 6.50%. The central bank announced its bimonthly monetary policy on Wednesday amid expanding economic growth and the recent increase in crude oil prices.
The RBI projects inflation for 2018-19 at 4.8- 4.9% in first half and 4.7% in the second half of the year, projection for GDP is 7.5-7.6 in first half and 7.3-7.4 in the second half.
The meeting of the monetary policy committee headed by RBI Governor Urjit Patel, began in Mumbai on Monday. The committee will meet today as well, before the policy will be announced. This is the first time the six-member committee is meeting for three days instead of the usual two, due to certain administrative exigencies.
All six members of the MPC including RBI Governor Urjit Patel voted for the 0.25 per cent rate hike.