RBI hikes key rate by 25 bps for second straight meet; ‘neutral’ stance kept

urjit-patel-7592

The RBI’s Monetary Policy Committee (MPC) raised the repo rate by 25 basis points to 6.50 percent. It is the first time since October 2013 that the rate has been increased at consecutive policy meetings.

India’s annual consumer inflation hit 5 percent in June, the eighth straight month in which it topped the RBI’s medium-term 4 percent target.

The reverse repo rate was also raised by 25 basis points, to 6.25 percent.

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