In the Reserve Bank of India Monetary Policy Committee Meeting on December 7, hiked the repo rate by 35 basis points (bps) to 6.25 percent with immediate effect, RBI Governor Shaktikanta Das announced.

This is the highest level RBI policy rate since August 2018.

It's the fifth rate hike by the central bank in this financial year.

In May RBI had raised the repo rate by 40 bps in an off-cycle meeting and 50 bps in June, August and September.

The rise in repo rate at 35 bps is expected to tame the raging inflation which has continued to remain above the 6 per cent mark for the 10 straight month in October.

RBI is focused on the withdrawal of accommodation, said the RBI governor further on MPC.

Standing deposit facility (SDF) rate is adjusted to 6.00 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 6.50 per cent.