RBI Policy Review Highlights: Repo Rate Hiked By 25 Basis Points, First In Over 4 Years
RBI Governor Urjit Patel-headed Monetary Policy Committee (MPC) on Wednesday announced a 25 basis points hike in repo rate to 6.25 per cent. The central bank also maintained its policy stance unchanged at 'neutral'. All six members of the MPC voted for an increase. The RBI reiterated its “commitment to achieving the medium-term target for headline inflation of 4 percent on a durable basis". The outcome of the three-day policy meet comes a week after official data showed GDP growth increased to 7.7 per cent in the January-March quarter - the fastest pace of growth in seven quarters. With that, India retained its position as the world's fastest growing major economy, ahead of China. The RBI had kept the repo rate - the key rate at which it lends to commercial banks - unchanged at 6 per cent in its last meeting.
