RBI hikes benchmark interest rate by 40 bps to 4.40% in an unscheduled policy review to contain inflation
The Reserve Bank of India (RBI) has hiked benchmark interest rate by 40 bps to 4.40 pc in an unscheduled policy review with a view to contain inflation.
Geopolitical tension pushing inflation, says RBI Governor Shaktikanta Das after Monetary Policy Committee unscheduled rate review meeting.
See Zee Business Live TV Streaming Below:
Governor said that RBI had announced intension to withdraw accomodative stance.
Shortages, volatility in commodities and financial markets are becoming more acute, the RBI Governor said on Wednesday.
RBI's MPC decides unanimously to continue with accommodative monetary policy stance.
Global economic recovery is losing momentum: RBI Governor.
The Reserve Bank on Wednesday announced a hike in cash reserve ratio (CRR) by 50 basis points to 4.5 per cent, effective May 21, which will take out Rs 87,000 crore liquidity from the system.
The decision was announced by RBI Governor Shaktikanta Das after an off-cycle meeting of the rate-setting panel -- Monetary Policy Committee (MPC).
CRR is a percentage of a bank's total deposits that it needs to maintain as liquid cash.
Ajit Kabi, Banking Analyst at LKP Securities
"RBI has raised the repo rate by 40bps with immediate effect and CRR by 50bps by 21st May 2022. The rate hike was much-anticipated factoring rise in food and general inflation. The rate hike is likely to shrink liquidity in the economy overall. As per as the banks are concerned the cost of funds is likely to increase so does the cost of deposits. It may translate into NIMs pressure. However, a quick increase in MCLR May control the NIMs squeeze"
Inputs from PTI
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Small SIP, Big Impact: Rs 1,111 monthly SIP for 40 years, Rs 11,111 for 20 years or Rs 22,222 for 10 years, which do you think works best?
SBI 444-day FD vs PNB 400-day FD: Here's what general and senior citizens will get in maturity on Rs 3.5 lakh and 7 lakh investments in special FDs?
SCSS vs FD: Which guaranteed return scheme will give you more quarterly income on Rs 20,00,000 investment?
Looking for short term investment ideas? Analysts suggest buying these 2 stocks for potential gain; check targets
Rs 3,500 Monthly SIP for 35 years vs Rs 35,000 Monthly SIP for 16 Years: Which can give you higher corpus in long term? See calculations
02:47 PM IST