RBI’s MPC hikes policy rate by 25 bps

The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) on Wednesday hiked the repo rate by 25 foundation factors to six.50 per cent.

Wednesday’s MPC assembly is the final one for this fiscal. The repo rate is the rate at which the RBI lends to the banks.

(*25*) the hike, RBI Governor Shaktikanta Das stated the MPC determined to hike the policy rate by 25 bps to six.5 per cent.

As anticipated, there was a cut up within the rate hike resolution with 4 members voting for the hike and two towards.

He stated the 25 bps hike was thought of right at this juncture. It additionally offers an elbow room to take a look at the incoming information.

According to Das, after the repo rate hike the standing deposit facility (SDF) rate stands adjusted to six.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to six.75 per cent.

He stated the MPC additionally determined to maintain a vigil on the inflation rate and it stays throughout the band. Das stated the inflation is predicted to be round 5.6 per cent throughout the fourth quarter of FY23.

On the expansion entrance, Das stated the gross home product (GDP) is predicted to develop at 6.4 per cent throughout 2023-24 with Q1 progress rate at 7.8 per cent, Q2-6.2 per cent, Q3 6 per cent and This fall 5.8 per cent and the dangers are evenly balanced.

According to him, the inflation for the present fiscal 2022-23 will likely be at 6.5 per cent and for This fall at 5.7 per cent.

As regards the CPI inflation for subsequent fiscal, that’s, 2023-24 at 5.3 per cent with Q1 at 5 per cent, Q2 5.4 per cent, Q3 5.4 per cent and This fall 5.6 per cent.

(With inputs from IANS)