RBI hikes Repo Rate by 40 bps to 4.40 percent in Monetary Policy Committee (MPC) Meet May 02 to 04, 2022

• The Reserve Bank of India (RBI) in its Monetary Policy Committee (MPC) meeting held between May 2-4, 2022 has decided to:
  • Increase the policy repo rate under the liquidity adjustment facility (LAF) by 40 basis points (bps) to 4.40 percent with immediate effect from 4.00% earlier.
  • RBI has also hiked the cash reserve ratio (CRR) by 50 basis points to 4.50 percent effective from May 21, 2022.
• Consequently the various rates are as under:
  • Policy Repo Rate : 4.40%
  • Standing Deposit Facility (SDF)= 4.15%
  • Marginal Standing Facility Rate : 4.65%
  • Bank Rate : 4.65%
  • CRR : 4.50%
  • SLR : 18.00%
• The MPC decided to continue with the accommodative stance.

Points to remember:

1. 1. Remember all the rates
   2. What is the stance of Monetary Policy Committee (MPC) meeting on May 04, 2022?- Accommodative