RBI Policy Highlights: Central Bank Hikes Repo Rate, Retains Growth Projections
RBI Governor Urjit Patel-led Monetary Policy Committee announced a hike of 25 basis points in repo rate in its monetary policy statement on Wednesday. This is the third bi-monthly statement by the central bank for financial year 2018-19. Repo rate is the key rate at which the RBI lends short-term funds to commercial banks. In its last policy review, the RBI had announced a 25-basis-point hike in the repo rate while maintaining its policy stance at 'neutral'. The June rate hike marked the first in more than four years. Since then, inflation has moved higher, further up from the RBI's target of 4 per cent over the medium term. The RBI's commentary on the rupee, industrial production, economic growth and crude oil will also be monitored by experts.