RBI hikes repo rate by 50 bps to 5.9%: Governor Shaktikanta Das

Mumbai, Sep 30: The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) on Friday hiked a 50 basis points (bps) policy rate to 5.90 per cent with immediate effect amid rising concerns over surging inflation, global headwinds and a slump in rupee to its record lows.

Addressing a press conference, RBI Governor Shaktikanta Das said,''Indian economy remains resilient despite global headwinds wherein global recession fears are mounting, inflation high.''

''The US dollar has reached a new high, he says. Emerging market economies are confronted with challenges of slowing global growth, elevated food and energy prices, spillovers from advanced economy policies, debt distress and sharp currency depreciation,''RBI Governor said.

Earlier this month, the US Fed hiked the key rate by 75 basis points taking the range to 3-3.25 per cent. The Bank of England has also hiked its policy rate by 50 basis points to 2.25 per cent.

The repo rate are rates at which the country's central bank lends money to commercial banks in the country. This is likely to increase interest rates for loans and deposits.