In conclusion of the RBI’s 3-day bi-monthly Monetary Policy Committee (MPC) meeting on Wednesday, RBI Governor Shaktikanta Das raised its key lending rate by 35 basis points to 6.25 per cent.
Central banks lend money to commercial banks at the repo rate.
“The global economy is experiencing uncertainty; food shortages and high fuel prices have affected the poor the most,” Das said.
On Monday, the Reserve Bank’s rate-setting panel started brainstorming for the next round of monetary policy.
Three times since June, the RBI has increased the key benchmark lending rate by 50 basis points (bps), in addition to an off-cycle 40 bps increase in the repo rate.
Furthermore, the central bank revised its projection for GDP growth and inflation for the current financial year 22-23 to 6.8 percent and 6.7%, respectively.