Multiple setbacks for common man; Repo rate hiked again, third hike in three months

MUMBAI: The Reserve Bank of India (RBI) has hiked the repo rate for the third time in a row. The repo rate has been increased by 50 basis points to 5.40 per cent with immediate effect. The third rate hike by the central bank aims to curb inflation.

The Indian economy has been grappling with high inflation, said RBI Governor Shaktikanta Das. Earlier, the Monetary Policy Committee (MPC) had raised the repo rate by 0.9 per cent. There has been a rise of 1.40 per cent within three months.

Repo rate is the interest charged by the RBI when commercial banks borrow from them by selling their securities to the central bank. It is used by the monetary authorities to control the inflation rates in the country.