The Reserve Bank of India (RBI) on Wednesday hiked the key policy rates for first time in four years. RBI hiked the repo rate by 25 basis points to 6.25 percent and the reverse Repo rate to 6 percent, the first increase since January 2014 and kept the stance neutral. On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the 6-member Monetary Policy Committee (MPC) decided to hike the rates with all the members voting in favour of a rate hike.
RBI in its first bi -monthly resolution of 2018- 19 in April projected CPI inflation in the range of 4.7- 5.1 percent in H1:2018- 19 and 4.4 percent in H2, including the HRA impact for central government employees with risks tilted to the upside. The 10-year benchmark bond yield rose 4 basis points to 7.87 percent after the monetary policy announcement while the rupee was at 66.97 to the dollar from 67.05 before the news. 

The Reserve Bank of India (RBI) on Wednesday hiked the key policy rates for first time in four years. RBI hiked the repo rate by 25 basis points to 6.25 percent and the reverse Repo rate to 6 percent, the first increase since January 2014 and kept the stance neutral. On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the 6-member Monetary Policy Committee (MPC) decided to hike the rates with all the members voting in favour of a rate hike.
RBI in its first bi -monthly resolution of 2018- 19 in April projected CPI inflation in the range of 4.7- 5.1 percent in H1:2018- 19 and 4.4 percent in H2, including the HRA impact for central government employees with risks tilted to the upside. The 10-year benchmark bond yield rose 4 basis points to 7.87 percent after the monetary policy announcement while the rupee was at 66.97 to the dollar from 67.05 before the news.