Mumbai | RBI Repo Rate : The Reserve Bank of India (RBI) on Wednesday increased the key policy rate repo by 0.40 percent to 4.40 percent. The central bank has taken this step mainly to control the rising inflation. Let us inform that retail inflation has remained above the target ceiling of 6 percent for the last three months. RBI has been entrusted with the responsibility of maintaining the retail inflation rate at four percent with two percent fluctuations. Let us inform that in the meeting of the Monetary Policy Committee (MPC) without any pre-decided schedule, all the six members have unanimously decided to increase the policy rate. On the other hand, the liberal stance has also been maintained.
#JustIn , In a surprise move, RBI hikes key policy repo rate to 4.40%
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Increases made after 2018
RBI Repo Rate : Giving information in this regard, Reserve Bank Governor Shaktikanta Das said that the inflation rate remains above the upper limit of the target of six percent. It is likely to remain high in the month of April as well. Retail inflation stood at 6.9 per cent in March. The Reserve Bank has increased the policy rate for the first time since August 2018. In such a situation, the pressure was increasing from all sides. Let us tell you that after this decision, all types of loans from home loans will also be expensive. This will create even more additional pressure on the common man.
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Effect of increasing repo rate
RBI Repo Rate : After the announcement of the increase in the repo rate of RBI, the domestic stock market recorded a big fall in the afternoon trade on Wednesday. Sensex fell 1,060.64 points. The 30-share BSE Sensex fell 1,060.64 points or 1.86 per cent to 55,915.35 in afternoon trade. The Nifty of the National Stock Exchange was also trading at 16,751.35, slipping 317.75 points or 1.86 percent. Among the Sensex companies, Bajaj Finserv, Bajaj Finance, Titan, HUL, RIL, Asian Paints and HDFC Bank were trading in losses. While PowerGrid, Kotak Mahindra Bank, NTPC, Infosys and Wipro were trading in gains.
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