Latest News LIVE: RBI likely to hike rates in key monetary policy review today

The Reserve Bank of India (RBI) in the Monetary Policy Committee’s (MPC’s) statement on Friday announced a rate hike of 50 basis points to 5.40 per cent. The bi-monthly meeting of the RBI MPC started on Wednesday, and RBI Governor Shaktikanta Das on Friday announced that marginal spending facility rate and the bank rate were revised to 5.65 per cent.

The central bank’s rate hike, the third in the current financial year, came in a bid to tame the inflationary pressure and protect against further rupee depreciation. In its off-cycle monetary policy review in May, the RBI hiked the policy repo rate by 40 basis points or 0.40 per cent to 4.40 per cent. Then in June, the RBI further raised the rate to 4.90 per cent, at a 50 basis point increase.

House Speaker Nancy Pelosi in Japan on Friday said that the US will not ‘not allow’ China to isolate Taiwan. This came after China deployed scores of plans and fired live missiles near Taiwan on Thursday in its biggest-ever drills in the Taiwan Strait, a day after Pelosi’s trip to the island nation. Taiwan’s defense ministry said it scrambled jets to warn away 22 Chinese fighter aircraft that crossed the Taiwan Strait median line into its air defense zone.

The International Monetary Fund (IMF) has recommended that India should gradually withdraw its fiscal and monetary policy stimulus, develop export infrastructure, and negotiate free-trade agreements with key trading partners to provide a sustainable boost to exports to maintain external sector balance at a comfortable level over the medium term.

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