RBI Hikes Rates, Loans To Get Costlier; Inflation Above Target

Wednesday, 8 June 2022newsdesk

The Reserve Bank of India raised its key interest rate by 50 basis points on Wednesday, taking the repo rate to 4.9 per cent, and raised its inflation projection for the current fiscal to 6.7 per cent, well above the upper-end of its target range of 2-6 per cent.

New Delhi, 08 June 2022

As per news report of NDTV, All the six members of the Monetary Policy Committee (MPC), headed by the RBI Governor, unanimously voted for the latest rate hike, taking the repo rate to 4.9 per cent. If broader market predictions are anything to go by, then the central bank is expected to hike rates again at its August meeting, taking the repo rate to above the pre-pandemic level. Consumer Price Index (CPI) based inflation, which RBI factors in while arriving at its monetary policy, galloped for the seventh straight month to touch an 8-year high of 7.79 per cent in April. Retail inflation has remained above the RBI's 2-6 per cent target band since the beginning of this year.

Source -NDTV