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.

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

They remained focused on withdrawing accommodation.

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

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

Source: BS