to 6.25 per cent, in order to control inflation. The repo rate is the interest rate at which the RBI lends to the commercial bank.
In the last monetary policy review in December 2022, the RBI MPC raised the repo rate by 35 basis points to 6.25 per cent.
However, after remaining above the Reserve Bank of India’s upper tolerance threshold of 6 per cent since January 2022, the retail inflation came under control for consecutive months — November 2022 and December 2022. The data from January 2023 is due for release later this weekend.
The retail inflation in November eased to 5.88 per cent and further in December to 5.72 per cent — its lowest level in one year.
Read all the Latest Business News here