RBI MPC increases repo rate by 25 bps, pegs FY24 inflation at 5.3%

Need to see decisive decline in inflation, core inflation still sticky, says RBI governor

The Reserve Bank of India’s Monetary Policy Committee has raised the repo rate by 25 basis points to 6.50 per cent in order to bring inflation back towards the central bank’s 4 per cent target, said governor Shaktikanta Das on Wednesday.

The decision was not unanimous with four of the six members of the MPC voting in favour of the rate hike. Ashima Goyal and Jayanth Varma voted against it.

The Standing Deposit Facility (SDF) rate now stands at 6.25 per cent while the Marginal Standing Facility (MSF) rate is at 6.75 per cent. The SDF is the lower bound