RBI Sets Up Financial Market Panel As Repo Rate Raised To 5.50%
· Business · LiveMint, Indian Express, Hindustan Times
The Reserve Bank of India is constituting a financial market consultative committee to deepen engagement with market participants on policy and operational matters. Governor Sanjay Malhotra announced the panel as financial markets and infrastructure evolve rapidly. The central bank also raised its key repo rate by 25 basis points to 5.50% to counter rising inflation risks and shifting global rate environments. The Monetary Policy Committee shifted its stance from neutral to calibrated tightening. The yield on the 10-year benchmark government bond rose to a high of 7.26% following the announcement before trading at 7.24%.
Why it matters
The rate hike increases borrowing costs for Indian consumers and businesses while the new committee establishes a structured dialogue channel for financial market stakeholders.
Read the original report — LiveMint
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