![](https://www.udayavani.com/wp-content/uploads/2024/07/meat-1-415x276.jpg)
RBI hikes benchmark lending rate by 50 basis points to rein in inflation
PTI, Sep 30, 2022, 10:35 AM IST
![](https://www.udayavani.com/wp-content/uploads/2022/09/RBI-4-620x404.jpg)
The Reserve Bank of India (RBI) on Friday raised the benchmark lending rate by 50 basis points to 5.90 percent in a bid to check inflation, which has remained above its tolerance level for the past 8 months.
With the latest hike, the repo rate, or the short-term lending rate at which banks borrow from the central bank is now close to 6 percent.
This is the fourth consecutive rate hike after a 40 basis points increase in May and a 50 basis point hike each in June and August. In all, RBI has raised the benchmark rate by 1.90 percent since May this year.
The six-member Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das decided in favor of the rate hike.
The Consumer Price Index (CPI) based inflation, which RBI factors in while fixing its benchmark rate, stood at 7 percent in August. Retail inflation has been ruling above the RBI’s comfort level of 6 percent since January this year.
Das retained the inflation projection at 6.7 percent for the current fiscal while slashing the real GDP growth estimate to 7 percent from the earlier forecast of 7.2 percent 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 percent earlier this month.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
![](https://www.udayavani.com/wp-content/uploads/2023/05/IndianClicks_GVega_Udayavani_300x250_12032021_1_1.gif)
Related Articles More
![](https://www.udayavani.com/wp-content/uploads/2024/07/IndiGo-PTI-rep-150x74.jpg)
IndiGo flags higher inflationary environment, escalation in fuel, airport costs
![](https://www.udayavani.com/wp-content/uploads/2024/07/BSE-bull-run-150x113.jpg)
Sensex rebounds 1,293 points, Nifty races to record high on value buying in bluechips
![](https://www.udayavani.com/wp-content/uploads/2024/07/idbi-150x84.jpg)
IDBI Bank privatisation: Security clearances in place, RBI’s nod expected soon
![](https://www.udayavani.com/wp-content/uploads/2024/07/EV-rep-Shutterstock-1-150x89.jpg)
Hyundai ties up with Charge Zone for high-speed EV chargers
![](https://www.udayavani.com/wp-content/uploads/2024/07/BSE-PTI-4-150x98.jpg)
Stock markets fall for 4th day on selling in banking shares, STT hike
MUST WATCH
Latest Additions
![](https://www.udayavani.com/wp-content/uploads/2024/07/meat-1-150x100.jpg)
Meat consignment: Legal action to be taken based on analysis report of species
![](https://www.udayavani.com/wp-content/uploads/2024/07/banerjee-150x101.jpg)
Mamata walks out of Niti Aayog meet, says she was stopped midway in her speech
![](https://www.udayavani.com/wp-content/uploads/2024/07/hc-31-150x92.jpg)
Teachers above 50 years of age exempted from ‘excess teacher’ transfers: Karnataka HC
![](https://www.udayavani.com/wp-content/uploads/2024/07/raut-4-150x101.jpg)
Writ of ‘Shivaji Fan Club’ runs in Maharashtra, that of ‘Aurangzeb Fan Club’ in Gujarat: Raut
![](https://www.udayavani.com/wp-content/uploads/2024/07/vijender-150x84.jpg)
Olympics 2024: Athletes have every right to ask for personal coaches, says Vijender Singh
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.