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RBI guv hikes repo rate by 40 basis points in emergency meet

RBI guv hikes repo rate by 40 basis points in emergency meet

In an unscheduled press briefing on Wednesday, the Reserve Bank of India (RBI) Governor Shaktikanta Das said that the Monetary Policy Committee (MPC) in an off-cycle meet unanimously voted to hike rates.

The policy repo rate has been hiked by 40 bps to 4.40% with immediate effect. The standing deposit facility rate is now at 4.15% while the marginal standing facility rate and bank rate stand at 4.65%. The RBI also hiked the cash reserve ratio (CRR) by 50 basis points to 4.5% effective May 21.

The RBI on Wednesday hiked rates for the first time since August 1, 2018.

"The MPC also decided to remain accommodative while focusing on withdrawal of accommodation to ensure that inflation remains within the target going forward while supporting growth," Das said.

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