RBI hikes repo rate by 40 bps to 4.40% in off-cycle meeting amid rising inflation

Reserve Bank of India (RBI) Governor Shaktikanta Das announced a 40-basis-point hike in the key lending rate 

And raised the cash reserve ratio (CRR) by 50 basis points in an unscheduled announcement on May 4. 

The move surprised markets pushing Benchmark Sensex down by 1474 points in the intra-day trade 

And pushing the yield on India's benchmark 10-year bond to 7.38 percent.

One basis point is one-hundredth of a percentage point. The revised repo rate now stands at 4.40 percent and the CRR at 4.5 percent.

Sensex falls over 1,000 points to 55,846 after RBI hikes repo rate to 4.40%

Sensex tanked over 1,000 points and was trading at 55,846 on Wednesday 

After the RBI announced a hike in the repo rate by 40 bps to 4.40%.

The Nifty 50 was also down over 330 points and was trading at around 16,736. 

"We must remain in readiness to use policy tools to preserve macro stability," RBI Governor Shaktikanta Das said.