The Reserve Bank of India (RBI) has raised the repo rate by 50 basis points, an increase for the second time in five weeks at the conclusion of the monetary policy committee’s three-day meeting on June 8. Earlier, the monetary policy committee (MPC) had held an unscheduled meeting in early May and voted unanimously for a 40 basis point repo rate hike in anticipation of a huge increase in April inflation. Consequently, the standing deposit facility (SDF) rate stands adjusted to 4.65 per cent and the marginal standing facility (MSF) rate and the bank rate to 5.15 per cent. The MPC also voted unanimously to remain focused on the withdrawal of accommodation to ensure that inflation remains within range going forward, while supporting growth.
The government has finally appointed three economists — PMEAC member Ashima Goyal, NCAER’s Shashanka Bhide and IIM-Ahmedabad professor Jayanth Varma — as new members of the RBI’s monetary policy committee (MPC) to decide on interest rates. Read more at: http://timesofindia.indiatimes.com/articleshow/78503120.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst