RBI decides to increase policy rate by 25 basis points

Reserve Bank of India (RBI) Governor Urjit Patel on Wednesday said that the RBI committee decided to increase the policy rate by 25 basis points while maintaining the neutral stand on monetary policy. “The assessment of the committee uncertainty around domestic inflation needs to be carefully monitored in the coming months.

In addition, rising trade protectionism geo political tensions and elevated oil prices pose risks to near term and long term global growth prospects, by adversely impacting investment, disruptive global supply chains and hampering productivity. Against this backdrop, the committee decided to increase the policy rate by 25 basis points while maintaining the neutral stand on monetary policy,” said Patel.