RBI increases repo rate by 35 basis points to 6.25%

In order to bring elevated inflation back to its target of 4%, the RBI Monetary Policy Committee (MPC) decided to increase the rate.

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The six-member MPC held its bi-monthly policy meeting from December 5 to 7.

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They remained focused on withdrawing accommodation.

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With 5 out of 6 members voting in favor of the rate increase, the MPC's rate decision was not unanimous.

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Das said that the MPC had retained its inflation forecast for the current financial year at 6.7 per cent.

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