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RBI hikes interest rate by 0.25% on inflationary concerns

Press Trust of India  |  Mumbai 

Reserve Bank of India for the second time in two-month raised interest rate by 0.25 per cent on inflationary concerns.

The central bank in its third bi-monthly policy of the current fiscal raised benchmark repo, or the short term rate at which it lends to other banks, by 0.25 per cent to 6.5 per cent.

The 6-member Monetary Policy Committee (MPC) headed by RBI Governor Urjit Patel kept its stance at neutral.

For July-September, it pegged CPI-based retail inflation at 4.2 per cent which it saw firming up to 4.8 per cent in the second half of the current fiscal.

The projected inflation rate is above its targeted comfort level of 4 per cent.

RBI kept the GDP forecast for the current fiscal unchanged at 7.4 per cent and saw it at 7.5-7.6 per cent in the second half of the current fiscal.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, August 01 2018. 14:55 IST
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