Swarajya Logo
Swarajya Logo
Politics States Economy Society Business Culture Infra Defence World Books Ideas Science Technology Heritage Archives Legal Movies Sports
  • Our Views
    Politics States Economy Society Business Culture Infra Defence World Books Ideas Science Technology Heritage Archives Legal Movies Sports
  • Magazine
  • Store

About Swarajya

Swarajya is a publication by Kovai Media Private Limited.

Swarajya - a big tent for liberal right of centre discourse that reaches out, engages and caters to the new India.

editor@swarajyamag.com

Useful Links

  • About Us
  • Subscriptions Support
  • Editorial Philosophy
  • Press Kit
  • Privacy Policy
  • Terms of Use
  • Code of Conduct
  • Plagiarism Policy
  • Refund & Cancellation Policy

Useful Links

  • About Us
  • Subscriptions Support
  • Editorial Philosophy
  • Press Kit
  • Privacy Policy
  • Terms of Use
  • Code of Conduct
  • Plagiarism Policy
  • Refund & Cancellation Policy

Participate

  • Contact Us
  • Write for us
  • Style Guide
  • Jobs

Stay Connected

  • Artboard 2 Copy 6Created with Sketch.
    Artboard 2 Copy 10Created with Sketch.
    Artboard 2 Copy 7Created with Sketch.
    Artboard 2 Copy 9Created with Sketch.
  • Andriod Logo
  • IOS Logo

Insta

RBI Finally Bites The Bullet, Increases Repo Rate By 25 Basis Points     

Swarajya StaffWednesday, June 6, 2018 4:07 pm IST
Reserve Bank of India Governor Urjit Patel. 
Reserve Bank of India Governor Urjit Patel. 
Reserve Bank of India Governor Urjit Patel. 

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Wednesday (6 June) voted unanimously to hike repo rate by 25 basis points to 6.25 per cent, in a first interest rate increase in four-and-a-half years, the Times of India has reported.

The repo rate is the rate at which the RBI lends short-term money to banks. The central bank has also increased the reverse repo rate – the rate at which the RBI borrows from commercial banks – to 6 per cent.

During its second bi-monthly monetary policy review of the ongoing fiscal, all six members including RBI Governor Urjit Patel voted for a 0.25 per cent rate hike. Earlier, in four previous policy reviews, the RBI's six-member MPC left the repo, or short-term interest rate for commercial banks, unchanged at 6 per cent.

Patel said that "the rates have been hiked after a prolonged pause".

The RBI also revised upwards the retail inflation range to 4.8-4.9 per cent in the first half of 2018-19, and 4.7 per cent in the second half.

However, the move comes as a bad news for those who have borrowed from banks because it is likely to lead to an increase in the interest they pay on loans, be it home loan, car loan or personal loan. When the RBI increases the repo rate, banks usually pass on the burden to the customers.

According to a report in the Economic Times, the rate increase is expected to trigger a spike in bond yields, thus raising further inflation risks.

Tags
Interest Rates
Reserve Bank of India
Inflation
Urjit Patel
Banking Sector
MPC
India economy
Basis Points

Comments ↓

An Appeal...


 

Dear Reader,

 

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

 

Our business model is you and your subscription.  And in challenging times like these, we need your support now more than ever.

 

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

 

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Get Swarajya in your inbox.


Magazine


Swarajya Magazine Cover Image
Merchandise

Merchandise


    Politics

    Rajasthan Exit Poll: Axis-My India Predicts More Seats For Congress, Contrary To Other Surveys Giving Majority To BJP

    Rajasthan Exit Poll: Axis-My India Predicts More Seats For Congress, Contrary To Other Surveys Giving Majority To BJP

    Nishtha Anushree
    14m

    BJP, Congress In A Close Contest In Madhya Pradesh, Predict Exit Polls

    Swarajya Staff
    20m

    Chhattisgarh Exit Polls: Congress Ahead But BJP Not Far Behind, Hung Assembly Possible Due To Neck-To-Neck Seats

    Nishtha Anushree
    42m

    Economy

    India's GDP Grows 7.6 Per Cent In July-September Quarter

    India's GDP Grows 7.6 Per Cent In July-September Quarter

    Nayan Dwivedi
    25m

    India's Fiscal Deficit Stood At Rs 8.037 Lakh Crore In First Seven Months Of Fiscal Year

    Swarajya News Staff
    52m

    India's Oil Imports From Russia Surge In November, Rebounding From Maintenance Slump: Kpler And Vortex Data

    Bhuvan Krishna
    53m

    Defence

    In One Of The Largest-Ever Deals, Defence Ministry Clears Purchase Of 97 Tejas Fighters And 156 Prachand Combat Helicopters For IAF

    In One Of The Largest-Ever Deals, Defence Ministry Clears Purchase Of 97 Tejas Fighters And 156 Prachand Combat Helicopters For IAF

    Ujjwal Shrotryia
    1h

    As India Mulls Renaming IAF To 'Air And Space Force,' Tata Forays Into Manufacturing High-Resolution Military Satellites

    Ujjwal Shrotryia
    5h

    Indian Navy's Ships Get Indigenous Firepower Boost: MoD Inks Contract Worth Rs 2,956 Crore For 16 Super Rapid Guns

    Ujjwal Shrotryia
    1d

    World

    Rebellion In Biden Administration Over Israel Policy: CIA Official Posts "Free Palestine", No Punishment But 'Listening Sessions'

    Rebellion In Biden Administration Over Israel Policy: CIA Official Posts "Free Palestine", No Punishment But 'Listening Sessions'

    Nishtha Anushree
    2h

    China Mourns Death Of Henry Kissinger, Crediting Him For Ending Mao-era Isolation

    Swarajya Staff
    4h

    "Matter Of Concern... Contrary To Government Policy": MEA On US Charging Indian Of Plotting To Kill Gurpatwant Singh Pannun

    Nishtha Anushree
    5h

    Culture

    Kashi Tamil Sangamam 2023 To Be Held From 17 December To 30 December, Registration Portal Launched By IIT Madras

    Kashi Tamil Sangamam 2023 To Be Held From 17 December To 30 December, Registration Portal Launched By IIT Madras

    S Rajesh
    1d

    M P N Ponnusamy: A Nagaswara Legend Passes Away Almost Unsung

    K Balakumar
    2d

    Streamlined Repatriation: India-US Deal To Fast-Track Return Of Stolen Antiquities

    Swarajya Staff
    3d
    States

    infrastructure


    Amit Mishra
    1

    JSW Infra Inks Pact With Karnataka Government For Rs 4,119 Crore Keni Port Project

    2 Mins Read
    Amit Mishra
    2

    History At 38,000 Feet: World's First Flight Powered By 100 Per Cent Sustainable Aviation Fuel Crosses The Atlantic Ocean

    2 Mins Read
    Arun Kumar Das
    3

    Central Railway Introduces Staggered Timings To Reduce Overcrowding In Mumbai Local Trains

    2 Mins Read
    Arun Kumar Das
    4

    Bullet Train Project: NHSRCL To Engage Consultant For Ticketing System, Invites Tenders From Indian Firms

    2 Mins Read