New Delhi: In a surprise move, the Reserve Bank of India (RBI) on Wednesday increased the policy repo rate by 40 basis points to 4.40 percent with immediate effect. Addressing a press conference, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) has unanimously voted to increase the policy repo rate by 40 basis points or 0.40 percent. The repo rate is the interest rate at which the RBI lends short-term funds to banks. Based on the assessment of the macroeconomic situation and the outlook, the Monetary Policy Committee voted unanimously to increase the policy repo rate by 40 basis points to 4.40 percent with immediate effect, Das said. The decision was taken in the unscheduled meeting of the Monetary Policy Committee. "The MPC continues to be accommodative while focusing on withdrawal of accommodation to ensure that inflation remains within the target going forward," the RBI Governor said. Potential market opportunities have opened due to geopolitical conditions and the recent trade agreements and a few more trade agreements are also expected to materialise in the coming months: RBI Governor Shaktikanta Das — ANI (@ANI) May 4, 2022 This is the first increase in the policy repo rate since May 2020.
