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.
Licence of Laxmi Co-operative Bank cancelled by RBI: Depositors can claim up to Rs 5 lakh
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.