RBI hikes repo rate again
After three days deliberations, The Reserve bank of India (RBI) raised Repo rate by 25 basis points (bps) to 6.5% in back to back. Accordingly, the reverse Repo rate adjusted to 6.25%, marginal standing facility rate and Bank Rate to 6.75% under the LAF stands. Earlier, RBI had raised interest rates in its June MPC meeting. Taking to the consideration of rise in Consumer Price Index (CPI) RBI's MPC had decided to raise both Repo and Reverse Repo rates. This decision was taken in 5-1 voting.
The RBI also raised its average inflation projection for the second half of the current financial year to 4.8%. It had projected an inflation of 4.7% in its earlier meeting held in June. RBI's policy statement also cited MSP hike as the primary factor stoking inflation this year.
Hit the Below Links for Official Press Releases of RBI:
Statement on Developmental and Regulatory Policies – August 1, 2018
Third Bi-monthly Monetary Policy Statement, 2018-19
Fourth Bi-monthly Monetary Policy Statement, 2018-19
Liquidity Adjustment Facility: Fixed Rate Repo Operations
Result of the 7-day Variable Rate Reverse Repo Auction held on August 1, 2018
Scheduled Banks’ Statement of Position in India as on Friday, July 20, 2018