The Reserve Bank of India has increased the repo rate or prime lending rate by 50 basis points to 5.90 per cent, RBI Governor Shaktikanta Das said while announcing the decisions of the Monetary Policy Committee (MPC).
The central bank had hiked repo rate four times since May to the recent 5.90 per cent.
The recent revision in repo rate has been made to keep inflation levels within the target.
Das retained the inflation projection at 6.7 per cent for the current fiscal while slashing real GDP growth estimate to 7 per cent from earlier forecast of 7.2 per cent for FY’23.
The latest RBI action follows the US Federal Reserve affecting the third consecutive 0.75 percentage point interest rate increase, taking its benchmark rate to a range of 3-3.25 per cent earlier this month.