RBI increases interest rates by 40 basis points to 4.40%

New Delhi : RBI Governor Shantikanta Das today announced an increase in the interest rate by 40 basis points to 4.40 per cent. The new interest rates are applicable from immediate effect. He noted inflation, geo-political tensions and shortage of commodity on global level as the reason behind hike in interest rate.

With the hike in lending rates, the EMIs and loans are also likely to get higher.

In the month of March, inflation was registered in nine out of 12 food subgroups. High-frequency price indicators for April indicate the persistence of food price pressures, said RBI Governor Shaktikanta Das

The impact of sudden announcement was seen on the equity market as it crashed during the end of the day. Sensex tanked nearly 1,100 points, whereas Nifty over 300 points.