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In a surprise move, RBI raises repo rate by 40 bps to 4.40 per cent

The RBI MPC voted unanimously to increase the benchmark rate, said Governor Shaktikanta Das

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RBI governor Shaktikanta Das

2 min read Last Updated : May 04 2022 | 4:04 PM IST

The central bank’s monetary policy committee (MPC) on Wednesday voted unanimously to increase repo rate by 40 basis points (bps) in an off-cycle meeting to tame inflation, which has remained elevated for some time now. The repo rate has been increased for the first time since August 2018.

The repo rate, after the surprise move, now stands at 4.40 per cent, with immediate effect. Consequently, the standing deposit facility (SDF) rate stands adjusted to 4.15 per cent; and the marginal standing facility (MSF) rate and the Bank Rate to 4.65 per cent.

The MPC, however, decided to remain accommodative while focusing on

Topics : Reserve Bank of India Shaktikanta Das RBI repo rate Indian Economy India inflation

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