You are here: Home » Finance » RBI Policy » News

RBI raises repo rate by 40 bps in surprise move; CRR increased by 50 bps

Business Standard

Bond yield shoots up; another interest rate hike likely in June

Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India, said he expected repo hikes in June and August policy review meetings too

Bond Yields | RBI monetary policy | monetary policy committee

Manojit Saha  |  Mumbai 

Bond yields shot up on Wednesday after the Reserve Bank of India (RBI) increased the repo rate by 40 bps to 4.4 per cent by calling an out-of-turn meeting of the monetary policy committee (MPC).

The yield on the 10-year government bond jumped 26 bps to close the day at 7.38 per cent while yields on the 3-year and 5-year bonds went up by 39 bps and 31 bps, respectively. Yields could go up further as the central bank is seen to hike interest rates again in the scheduled policy review meeting in June. “With inflation likely to remain above 6 per cent for H1-FY23 and risks of it ...

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, May 05 2022. 01:16 IST