The Reserve Bank of India hiked its repo rate

The Reserve Bank of India hiked its repo rate by 25 basis points to 6.50% while keeping the monetary policy stance unchanged at 'Neutral.'

All the members of the Monetary Policy Committee's, except Ravindra Dholakia, voted to hike the Reserve Bank of India's repo rate to 6.50% while keeping the policy stance unchanged at "neutral". The RBI-led MPC has upwardly revised the inflation forecast for the second half of FY 2019 to 4.8% from 4.7% seen in June policy RBI expects retail inflation in 4.7%-4.8% range in the second half of FY19 excluding the HRA impact with risks evenly balanced.

Excluding the HRA impact, CPI inflation is projected at 4.4% in Q2, 4.7-4.8% in H2 and 5.0 % in Q1:2019-20," the central bank said on Wednesday. The Reserve Bank of India retained FY19 GDP growth forecast at 7.4% in FY2019, the Monetary Policy Report showed. The next MPC meeting outcome will be out on Oct 5, 2018.

Reserve Bank of India (RBI) Hikes Repo Rate: