Active Stocks
Thu Mar 28 2024 13:39:23
  1. Tata Steel share price
  2. 155.45 1.70%
  1. HDFC Bank share price
  2. 1,454.45 0.95%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
  1. ITC share price
  2. 429.05 0.25%
  1. State Bank Of India share price
  2. 755.05 2.86%
Business News/ Industry / Banking/  RBI repo rate hike synchronised with central banks globally: Centre
BackBack

RBI repo rate hike synchronised with central banks globally: Centre

It (rate hike) came as a surprise because it came between the two monetary policy reviews, Nirmala Sitharaman said

The Reserve Bank of India on May 4 increased the policy repo rate by 40 basis points to 4.40 per cent.Premium
The Reserve Bank of India on May 4 increased the policy repo rate by 40 basis points to 4.40 per cent.

Union Finance Minister Nirmala Sitharaman on Saturday asserted that the Reserve Bank of India's (RBI) decision to increase key policy interest rates is a part of the synchronised event by the central banks globally.

The decision did not surprise the government, Sitharaman said at an event adding, "It (rate hike) came as a surprise because it came between the two monetary policy reviews."

The Reserve Bank of India on May 4 increased the policy repo rate by 40 basis points to 4.40 per cent. The central bank also announced a 0.50 per cent increase in the cash reserve ratio (CRR).

The decision was taken in the unscheduled meeting of the RBI's Monetary Policy Committee.

The Monetary Policy Committee (MPC) decided to hold an off-cycle meeting on 2nd and 4th May 2022 to reassess the evolving inflation-growth dynamics and the impact of the developments after the MPC meeting of April 6-8, 2022, RBI Governor Shaktikanta Das had said while making the announcement about the rate hike.

"Based on this assessment of the macroeconomic situation and the outlook, the MPC voted unanimously to increase the policy repo rate by 40 basis points to 4.40 per cent, with immediate effect," Das said. The repo rate is the interest rate at which the RBI lends short-term funds to banks.

The standing deposit facility (SDF) rate stands adjusted to 4.15 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 4.65 per cent.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 07 May 2022, 09:55 PM IST
Next Story footLogo
Recommended For You
Banking Stocks
₹1,053.6-0.43%
₹1,440.70.99%
₹1,0841.56%
₹122.751.79%
₹734.052.93%
Switch to the Mint app for fast and personalized news - Get App