RBI hikes interest rate by 40 bps to 4.40%, first since May 2020; borrowing to become expensive now

In a move that will raise borrowing costs for corporates and individuals, the RBI on Wednesday after an unscheduled MPC meeting hiked the benchmark lending rate by 40 basis points (bps) to 4.40 per cent to contain inflation that has remained stubbornly above the target of 6 per cent for the last three months. The CRR hike will be effective from May 21.