RBI hikes Repo rate for first time in 4 years under BJP Regime
India's Apex Bank Reserve Bank of India has raised repo rate for the first time in four years amidst inflation concerns surprising market analysts by keeping its policy stance "neutral".
The six-member monetary policy committee of RBI headed by governor Urjit Patel has hiked the repo rate by 25 basis points to 6.25 percent. While the reverse repo rate has been adjusted to 6 percent.
Notably, this is a first-time hike in policy rate done by the central bank since Narendra Modi led BJP government has come into office in may 2014.
Meanwhile, RBI has allowed 2 percent more SLR (Statutory liquidity ratio) to meet liquidity coverage ratio.
In its official statement, RBI said that "it reiterates its commitment to achieving the medium-term target for headline inflation of 4 percent on ...