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The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) in a sudden move on Wednesday hiked the policy repo rate by 40 basis points (bps) to 4.40 per cent with immediate effect. Consequently, the standing deposit facility (SDF) rate too was adjusted to 4.15 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 4.65 per cent. The sudden move by the central bank was taken in an off-cycle meeting of the MPC in a bid to contain inflation, which has remained above the RBI’s target of 6 per cent for the past three months.

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