Mumbai, Feb 8 (KNN) Reserve Bank of India (RBI) on Wednesday announced an increase in the repo rate by 25 basis points (bps) to 6.5 per cent as the Monetary Policy Committee (MPC) voted in favour of repo rate decision by 4 votes to 2.

In his post meeting address RBI Governor Shaktikanta Das said that it aims to expand scope for TReDS platform to help improve cash flows of MSMEs.

“MPC also voted to continue focus on withdrawal of accommodation and in favour of stance decision by 4 votes to 2,” said Das.

The standing deposit facility rate now stands at 6.25 percent and marginal standing facility rate stands at 6.75 percent.

The central bank has predicted inflation to remain above 4 per cent target and FY24 GDP growth is seen at 6.4 per cent

Das spoke about how monetary policies across the world have been put to test due to the unprecedented events of the last few years.

“Emerging market economies are facing sharp tradeoffs between supporting economic activity and controlling inflation while preserving policy credibility,” he noted.  (KNN Bureau)