RBI raises the repo rate to 5.40%
What happened. On 5 August 2022 the Monetary Policy Committee raised the repo rate by 50 basis points to 5.40%, taking it above its pre-pandemic level of 5.15%.
Why it matters for investors. Policy rates were back above their pre-pandemic level while inflation remained above the 6% upper tolerance band. Borrowers on floating-rate loans saw their EMIs or tenures rise.
Event date: 5 Aug 2022. Source: Reserve Bank of India, Monetary Policy Statement.
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