The Reserve Bank of India (RBI) on Friday hiked repo rate by 50 basis points to 5.90 per cent in order to control the rising inflation, keeping in line with the aggressive policies of central banks and the volatile markets prevalent across economies.

RBI Governor Shaktikanta Das announced the rate hike on Friday. In the meeting of the Monetary Policy Committee (MPC) that started on Wednesday, five of the members of the MPC voted to hike the key lending rate, repo rate, by 50-basis points (bps).

The rates for the standing deposit facility (SDF) and the marginal standing facility (MGF) were also raised by 50 basis points to 5.65 per cent and 6.15 per cent, respectively.

The central bank had already hiked the key policy rate by 140 bps since May to 5.4 per cent to cool off domestic retail inflation that has stayed above the RBI's upper tolerance limit of 6 per cent each month this year.
The MPC is responsible for fixing the benchmark interest rate in India. In the committee, three members are from RBI and three members are from outside.

(with inputs from ANI)