RBI MPC Live Updates: Repo rate hiked by 35 bps
RBI MPC Live Updates: Repo rate hiked by 35 bps
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RBI Policy December 2022 Live: The decision of the Reserve Bank of India (RBI) Governor Shaktikanta Das headed 6-member Monetary Policy Committee has been announced on Wednesday. The RBI has raised its key policy rate as inflation continues to stay above its tolerance band.

with an aim to cushion the impact of covid-induced lockdown,  the RBI cut the repo rate in March 2020. It then kept the benchmark interest rate unchanged for nearly two years until raising it on May 4, 2022. Since its first unexpected mid-meeting rate increase in May, the RBI has increased rates by a total of 190 basis points, and there are expectations for at least two more rate increases in the current cycle, including the one on Wednesday.

With immediate effect, the RBI increased the repo rate for a fifth consecutive time, by 35 basis points to 6.25%.

"Instead of the previous three 50-bps increases, the MPC is expected to raise the repo rate by 35 basis points at the RBI's December policy meeting. However, it's unlikely that everyone will agree, according to Suvodeep Rakshit, chief economist at Kotak Institutional Equities.

Meanwhile, IndianRupee declined 25 paise to open at 82.75 against the US dollar in early trade on Wednesday ahead of the RBI policy.

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