Reserve Bank of India’s Monetary Policy Committee (MPC) in their meeting on Wednesday, 08th June, 2022 decided to hike key rate in order to curb ongoing high inflation situation. Repo rate is raised by 50 basis points (bps) from 4.40% to 4.90%. 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.
These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth. It is to be noted that last month also, MPC raised repo rate by 40 bps and cash reserve ration by 50 bps.
Effective key rates as on 8th June, 2022 is as under;
Repo Rate : 4.90%
Standing Deposit Facility : 4.65%
Marginal Standing Facility : 5.15%
Bank Rate : 5.15%
Reverse repo rate : 3.35%
Cash Reserve Ratio (CRR) : 4.50%
Statutory Liquidity Ratio (SLR) : 18.00%
