The weighted average call rate, an overnight funding cost rate that the central bank monitors, have climbed almost 30 basis points since the start of the year. At 6.78% on Wednesday, it’s just hovering above the upper band of the Reserve Bank of India’s interest-rate corridor of 6.75%.
Against majority expectation, MPC paused on rate hikes in a unanimous decision. All except RBI MPC member Prof. Jayanth Varma chose to persist with 'withdrawal of accommodation', with the latter presumably wanting to shift to neutral in light .