New Delhi: On September 30, the Reserve Bank of India (RBI) hiked policy repo rate by 50 basis points to 5.90 per cent. The country’s central bank is widely expected to announce another 50 basis point hike after its December meeting and close the year with a policy rate above 6 per cent.
The repo rate of a country is simply but the interest rate at which the country’s central bank lends money to recognized commercial banks. It is used as a tool by the central bank in the financial market to achieve the country’s fiscal goals. An increased repo rate would result in increased borrowing costs as the banks would pass on the burden of the rate hike to consumers in the form of higher loan and deposit interest rates.
HERE’S HOW ASIAN COUNTRIES HAVE MAINTAINED THEIR POLICY RATES*
COUNTRY
REPO RATE (%)
REFERENCE
Japan
-0.1
Sep/22
Cambodia
0.73
Jun/22
Thailand
1
Sep/22
Taiwan
1.63
Sep/22
Malaysia
2.5
Sep/22
South Korea
2.5
Sep/22
Israel
2.75
Oct/22
Kuwait
3
Sep/22
Laos
3.1
Aug/22
Hong Kong
3.5
Sep/22
Macau
3.5
Sep/22
China
3.65
Oct/22
Oman
3.75
Sep/22
Saudi Arabia
3.75
Sep/22
Singapore
3.89
Sep/22
Bahrain
4
Sep/22
Iraq
4
Jul/22
Indonesia
4.25
Sep/22
Philippines
4.25
Sep/22
Jordan
4.5
Aug/22
Qatar
4.5
Sep/22
United Arab Emirates
4.5
Sep/22
Vietnam
5
Sep/22
Brunei
5.5
Jul/22
Bangladesh
5.75
Sep/22
India
5.9
Sep/22
Maldives
7
Sep/22
Myanmar
7
Sep/22
Bhutan
7.16
Aug/22
Azerbaijan
7.75
Sep/22
Lebanon
7.75
Aug/22
Nepal
8.5
Sep/22
Armenia
10
Sep/22
Georgia
11
Sep/22
Mongolia
12
Sep/22
Tajikistan
13.5
Sep/22
Kyrgyzstan
14
Aug/22
Kazakhstan
14.5
Sep/22
Sri Lanka
14.5
Oct/22
Pakistan
15
Oct/22
Uzbekistan
15
Sep/22
Iran
18
May/22
*Above data compiled from Tradingeconomics