RBI hikes interest rate by 40 basis points to 4.40%, CRR to 4.50% in unscheduled policy review
India TV NewsHighlights This is the first-rate hike by the RBI since August 2018 The next meeting of the MPC is scheduled during June 6-8 Das said that MPC voted unanimously to maintain an accommodative stance The Reserve Bank of India on Wednesday announced to hike the repo rate by 40 basis points and cash reserve ratio by 50 basis points in an unscheduled policy review. The repo rate is the rate at which the central bank lends money to commercial banks while the CRR is a certain minimum amount that banks have to deposit as reserves with the central bank. The decision to hike the rate was announced at a time when the inflation rates in the country have soared, breaching the central bank's estimate. The decision follows an unscheduled meeting of the Monetary Policy Committee, with all six members unanimously voting for a rate hike while maintaining the accommodative stance.