{"id":28919,"date":"2018-10-24T15:46:18","date_gmt":"2018-10-24T10:16:18","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=28919"},"modified":"2018-10-31T14:45:23","modified_gmt":"2018-10-31T09:15:23","slug":"rbi-hikes-repo-rate-by-25-basis-points-to-6-25-2","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rbi-hikes-repo-rate-by-25-basis-points-to-6-25-2\/","title":{"rendered":"RBI hikes repo rate by 25 basis points to 6.25%"},"content":{"rendered":"<p><strong>RBI hikes repo rate by 25 basis points to 6.25%<\/strong><\/p>\n<p><strong><u>News:<\/u><\/strong><\/p>\n<p>1. The RBI raises repo rate as international crude oil price surges.<\/p>\n<p><strong><u>Important facts:<\/u><\/strong><\/p>\n<p>2. The six-member <strong>monetary policy committee (MPC)<\/strong> of the Reserve Bank of India (RBI) increased the repo rate by 25 basis points to 6.25%.<\/p>\n<p>3. The last hike was in January 2014.<\/p>\n<p><strong><u>Reasons for increased in repo rate:<\/u><\/strong><\/p>\n<p><strong>Hardening inflation trends.<\/strong><\/p>\n<p>4. A firming up of <strong>growth recovery at home.<\/strong><\/p>\n<p><strong>5. Global uncertainties<\/strong> affecting emerging markets.<\/p>\n<p>6. The rupee, along with other emerging market currencies, is hurting too.<\/p>\n<p><strong>7. Crude oil prices<\/strong> have been the biggest factor at play, rising 12% from $66 a barrel when the MPC met in April to $74 a barrel.<\/p>\n<p><strong><u>RBI\u2019s Inflation projection:<\/u><\/strong><\/p>\n<p>8. The RBI increased its inflation projection to 4.8% -4.9% in the first half (H1) of the financial year and 4.7% in the second half, as compared with 4.7-5.1% in H1 and 4.4% for H2.<\/p>\n<p>9. The Apex bank said, the Indian crude basket surged to $74 a barrel from $66 since the last policy meeting in April.<\/p>\n<p>10. Consumer price index-based inflation, or retail inflation, rose to 4.6% in April from 4.28% in March.<\/p>\n<p>11. While the central bank has increased the inflation projection, it has maintained the \u2018neutral\u2019 stance for monetary policy.<\/p>\n<p><strong><u>GDP growth projection:<\/u><\/strong><\/p>\n<p>12. The outlook for GDP growth for 2018-19 has been retained at 7.4% as projected in the April Policy.<\/p>\n<p>13. GDP growth is projected to be in the range of 7.5-7.6% in H1 and 7.3-7.4% in H2, with risks with risk evenly balanced.<\/p>\n<p><strong><u>Possible consequences:<\/u><\/strong><\/p>\n<p>14. As inflationary trends harden, the RBI\u2019s rate hike will quell uncertainty in the markets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>RBI hikes repo rate by 25 basis points to 6.25% News: 1. The RBI raises repo rate as international crude oil price surges. Important facts: 2. The six-member monetary policy committee (MPC) of the Reserve Bank of India (RBI) increased the repo rate by 25 basis points to 6.25%. 3. The last hike was in&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/rbi-hikes-repo-rate-by-25-basis-points-to-6-25-2\/\">Continue reading <span class=\"screen-reader-text\">RBI hikes repo rate by 25 basis points to 6.25%<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-28919","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704888745},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/28919","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=28919"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/28919\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=28919"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=28919"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=28919"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}