RBI raises the repo rate to 6.50%
What happened. On 8 February 2023 the Monetary Policy Committee raised the repo rate by 25 basis points to 6.50%, the sixth increase in the cycle, and retained the focus on withdrawal of accommodation.
Why it matters for investors. The 250 basis point cumulative increase since May 2022 passed through to loan and deposit rates, lifting fixed-deposit yields and short-term debt-fund yields.
Event date: 8 Feb 2023. Source: Reserve Bank of India, Monetary Policy Statement.
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