MPC hikes repo rate by 50 bps to 5.40%; Covid-era cuts reversed entirely

Committee retains FY23 CPI forecast at 6.7%, flags uncertainty on inflation trajectory

The Reserve Bank of India’s Monetary Policy Committee (MPC) on Friday announced a 50 basis point hike in the repo rate to 5.40 per cent, citing continued upside risks to inflation.

The Standing Deposit Facility (SDF) rate is now at 5.15 per cent, while the Marginal Standing Facility (MSF) Rate stands at 5.65 per cent. The SDF represents the lower band of the interest rate corridor and the MSF the higher.

A 'Business Standard' poll on Monday predicted a 35-50 basis-point increase in the repo rate at this week’s policy statement. The benchmark policy repo rate is now at the