New Delhi: The Reserve Bank of India (RBI) on Wednesday announced a 25-basis-point hike in the repo rate to 6.25 per cent, in line with market expectations. The six-member Monetary Policy Committee (MPC) kept its stance neutral, despite a repo rate increase.
All of the six members of the MPC, including Governor and MPC Chairman Urjit Patel voted in favour of a rate hike.
Repo rate is the rate at which the Reserve Bank of India lends money to commercial banks. RBI also revised its retail inflation estimate for 2018-19 to 4.8-4.9 per cent for the first half, and 4.7 per cent for the second. The MPC said that a sharp and durable increase in global crude oil price was seen as a key risk to retail inflation.
The central bank retained its gross domestic product (GDP) growth projection at 7.4 per cent for 2018-19.