India’s Reserve Bank of India on Wednesday hiked the repo price for the 5th time in a row, by means of 35 bps to six.25% with quick impact. The central financial institution had remaining raised the important thing benchmark price by means of 50 foundation issues on September 30. With this, the repo price has been raised by means of 225 bps since April 2022.
“The MPC was of the view that further calibrated monetary policy action is warranted to keep inflation expectations anchored, break core inflation persistence and contain second round effects…, said RBI Governor Shaktikanta Das and maintained that the RBI would continue the withdrawal of accommodation.
RBI also lowered its GDP growth forecast for FY23 to 6.8 per cent from 7 per cent earlier but retained the consumer price inflation forecast for FY23 at 6.7 per cent.
RBI governor Shaktikanta Das said risks to inflation and core inflation have emerged as the two big worries for the monetary policy committee currently.
Here are the key highlights from the RBI policy,
MPC voted to remain focused on withdrawal of accommodation
Inflation expected to be above 4 percent in the next 12 months
GDP growth forecast for FY23 lowered to 6.8 percent from 7 percent
cpi inflation forecast for FY23 retained at 6.7 percent
Standing Deposit Facility rate, Marginal Standing Facility rate also increased by 35 basis points each to 6% and 6.5%.
The Indian rupee has appreciated by 3.2 percent during April-October in real terms, even as major currencies have depreciated. Rupee should be allowed to find its level.
CPI inflation forecast for Oct-Dec 2022 raised to 6.6% from 6.5%
January-March 2023 to 5.9% from 5.8%
April-June 2023 at 5.0%
July-September 2023 at 5.4%
Growth forecast: GDP expansion forecast for Jan-Mar 2023 reduced to 4.2%
GDP expansion forecast for Oct-Dec 2022 reduced to 4.4%
“The MPC was of the view that further calibrated monetary policy action is warranted to keep inflation expectations anchored, break core inflation persistence and contain second round effects…, said RBI Governor Shaktikanta Das and maintained that the RBI would continue the withdrawal of accommodation.
RBI also lowered its GDP growth forecast for FY23 to 6.8 per cent from 7 per cent earlier but retained the consumer price inflation forecast for FY23 at 6.7 per cent.
RBI governor Shaktikanta Das said risks to inflation and core inflation have emerged as the two big worries for the monetary policy committee currently.
Here are the key highlights from the RBI policy,
MPC voted to remain focused on withdrawal of accommodation
Inflation expected to be above 4 percent in the next 12 months
GDP growth forecast for FY23 lowered to 6.8 percent from 7 percent
cpi inflation forecast for FY23 retained at 6.7 percent
Standing Deposit Facility rate, Marginal Standing Facility rate also increased by 35 basis points each to 6% and 6.5%.
The Indian rupee has appreciated by 3.2 percent during April-October in real terms, even as major currencies have depreciated. Rupee should be allowed to find its level.
CPI inflation forecast for Oct-Dec 2022 raised to 6.6% from 6.5%
January-March 2023 to 5.9% from 5.8%
April-June 2023 at 5.0%
July-September 2023 at 5.4%
Growth forecast: GDP expansion forecast for Jan-Mar 2023 reduced to 4.2%
GDP expansion forecast for Oct-Dec 2022 reduced to 4.4%