The RBI’s monetary policy committee decided to raise the repo rate by 50 basis points to 5.9 percent, as expected by most experts. Over the past 5 months, the repo rate has seen an increase of 190 bps (from 4% in April to 5.90%). Reserve Bank of India Governor Shaktikanta Das said the SDF rate is revised to 5.65%. He added that RBI will continue to focus on accommodation withdrawal.
“The geopolitical situation affected the demand-supply scenario. Global central banks have been aggressively raising rates at the cost of economic woes. In this context, the Indian economy remains stable,” Das said. He added that India suffered the shocks of the pandemic, the Russian-Ukrainian conflict.
The RBI guv said the MPC has retained the Consumer Price Index (CPI)-based inflation projections that were given earlier. CPI inflation for the current financial year is seen at 6.7 percent, with the price index at 7.1 percent in July-September, 6.5 percent in October-December and 5.8 percent in January-March. CPI inflation will reach 5% in the first quarter of the next financial year.
Talking about India’s GDP growth, Das announced that the MPC has lowered its real GDP forecast for the current fiscal to 7 percent from 7.2 percent earlier. GDP growth for July to September can be seen at 6.3 percent and for October to December at 4.6 percent. Growth in January-March is seen at 4.6 percent and for the first quarter of the next financial year, it is seen at 7.2 percent.
Read Now :21st century India will get new dynamism from the country’s cities: PM Narendra Modi
