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That is the fifth consecutive price hike after a 40 foundation factors enhance in Might and 50 foundation factors hike every in June, August and September
Mumbai: The Reserve Financial institution of India (RBI) on Wednesday raised the benchmark lending price by 35 foundation factors to six.25 per cent in a bid to tame inflation, which has remained above its tolerance stage for the previous 11 months.
With the newest hike, the repo price or the short-term lending price at which banks borrow from the central financial institution now has crossed 6 per cent.
That is the fifth consecutive price hike after a 40 foundation factors enhance in Might and 50 foundation factors hike every in June, August and September. In all, the RBI has raised the benchmark price by 2.25 per cent since Might this 12 months.
The six-member Financial Coverage Committee (MPC) headed by RBI Governor Shaktikanta Das determined by majority view in favour of the speed hike.
The Shopper Worth Index (CPI) primarily based inflation, which RBI components in whereas fixing its benchmark price, stood at 6.7 per cent in October. Retail inflation has been ruling above the RBI’s consolation stage of 6 per cent since January this 12 months.
Das retained the inflation projection at 6.7 per cent for the present fiscal.
The RBI has slashed its GDP progress forecast to six.8 per cent from an earlier estimate of seven per cent for the present fiscal.
In its final bi-monthly coverage overview launched in September, the RBI had slashed the financial progress projection for the present monetary 12 months to 7 per cent from 7.2 per cent earlier on account of prolonged geopolitical tensions and aggressive financial coverage tightening globally.
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