RBI Policy: repo rate hiked by 40 basis points to 4.40 per cent

Sakshi Education

Below are the highlights of RBI Policy. Shaktikanta Das headed the Monetary Policy Committee (MPC) meeting:

Reserve Bank of India has hiked the repo rate by 40 basis points, taking it to 4.40 per cent.
Monetary Policy Committee at its meeting decided to increase the policy repo rate under the Liquidity Adjustment Facility by 40 basis points to 4.40 per cent with immediate effect.
Cash reserve ratio hiked by 50 bps to 4.5% effective May 21
Interest rate hike is aimed at strengthening, consolidating medium-term economic growth prospects
Foreign exchange reserves remain high at over USD 600 billion and debt-to-GDP ratio is low
Raise in fertilizer prices and other input costs have direct impact on food prices in India