RBI hikes repo rate by 50 basis to cool inflation; highest since 2019
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The monetary policy committee of the Reserve Bank of India has unanimously decided to raise the repo rate by 50 basis points to 5.40 per cent in order to contain the persistently high inflation. Today's hike takes the repo rate above pre-pandemic levels of 5.15 per cent. Raising interest typically suppresses demand in the economy, thereby helping inflation to decline.