RBI MPC: Revised Repo, SDF, MSF Rates; Gov on Inflation & Indian Economy

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RBI MPC: Revised Repo, SDF, MSF Rates; Gov on Inflation & Indian Economy

By Malvika Gurung

Investing.com -- The RBI Monetary Policy Committee announced a 35 bps repo rate hike on Wednesday, taking the benchmark interest rate to 6.25% from 5.9% while retaining the 'Withdrawal of Accommodation' stance in a 4:6 vote.

The Standing Deposit Facility (SDF) rate and the MSF rate have been raised by 35 basis points each, revised to 6% and 6.5%, respectively.

The central bank has been hiking the repo rate consecutively by 50 bps for the last three times and has gone easy for the first time since May. With Wednesday’s rate hike, RBI has increased the repo rate by 225 basis points.

India’s retail inflation declined sharply to 6.77% in Oct to a 3-month low, mainly due to easing food prices, yet remaining above RBI’s mandated tolerance band of 2-6% for the 10th consecutive month.

According to RBI Governor Shaktikanta Das, inflation continues to remain high and broad-based world over despite easing commodity, energy, and food prices. He stated that the problem of inflation is not over, and the battle against inflation continues.

“The Indian economy remains resilient,” he added.

Read Also: RBI Hikes Repo Rate by 35 Bps, Retains Accommodation Withdrawal Stance

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