MUMBAI: The Reserve Bank of India (RBI) has hiked the repo rate by 40 basis points considering the high inflation rates in the country. With this, the repo rate has gone up to 4.40 per cent. The decision was taken by the RBI’s Monetary Policy Committee (MPC) in its off-cycle meeting held on May 2 and May 4, said RBI Governor Shaktikanta Das.

The decision was taken in view of the rising inflation, geo-political tensions, high crude oil prices and shortage of commodities globally, which have impacted Indian economy, he added.

The hike is part of the measures to reduce inflation in the market and to control the price hike. All those who took part in the meeting voted in favour of the decision. The repo rate has remained unchanged at four per cent since 2020. The inflation rate had been hovering above the RBI’s capacity limit of six percent for the past few months. As the repo rate has been hiked, loan interest rates will also go up.