Economy & Finance
RBI raises repo rate to 5.5% amid calibrated tightening to anchor inflation
The Monetary Policy Committee (MPC) of the Reserve Bank of India raised the policy repo rate under the liquidity adjustment facility by 25 basis points to 5.50% and shifted its stance from neutral to calibrated tightening. This decision was driven by persistently high inflation, particularly in food items, and global uncertainties. The standing deposit facility and marginal standing facility rates remain unchanged at 5.25% and 5.75% respectively, reflecting the central bank's commitment to stabilizing price growth while supporting broader economic momentum.
Key Points
- The RBI hiked the repo rate by 25 basis points to 5.50%.
- The policy stance shifted from neutral to calibrated tightening.
- The standing deposit facility (SDF) rate was kept unchanged at 5.25%.
- The marginal standing facility (MSF) rate was maintained at 5.75%.
Exam Facts
- Repo rate raised to 5.50% by the MPC.
- SDF rate is 5.25% and MSF rate is 5.75%.
- Inflation target maintained at 4%.
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