RBI hikes repo rate for the first time in 4.5 years
The RBI has hiked the repo rate, the rate at which banks borrow from RBI, by 25 bps to 6.25% during its second bi-monthly policy review of 2018-19. This is the first hike since January 2014, when the rate was raised to 8%. The hike comes amid rising oil prices and high retail inflation, which accelerated to 4.58% in April.