RBI Hikes Repo Rate By 25 Basis Points To 6.25%


The RBI on Wednesday hiked the key rate for the first time in over four years, by 0.25% to curb inflationary pressure from high oil prices, a move which will translate into higher EMIs for home, auto and other loans.

  1. The reverse repo rate, at which it borrows from banks, was also raised by similar proportion to 6%.
  2. This is the first increase in interest rate since January 28, 2014.
  3. Consumer Price Index (CPI) based retail inflation was projected at 4.6% for the April-September period and 4.7% in second half of 2018-19 fiscal.

New Rates are:

  1. Repo Rate: 6.25%
  2. Reverse Repo Rate: 6.25%
  3. GDP growth outlook: unchanged at 7.4%
  4. Marginal standing facility (MSF) rate: 6.5%.
  5. Bank Rate: 6.5%.


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