The Reserve Bank of India has announced its decision of increasing the Repo rate by 50bps as a part of its bi-monthly policy.
Since the current inflation remained in the RBI’s expected zone, the RBI rate-setting committee made a unanimous decision on hiking the rates. The Monetary Policy Committee or the RBI’s rate-setting panel are engaged in their 3-day meeting for a focused discussion on the prevailing economic situation.
The Reserve Bank of India kept the Cash Reserve Ratio unused. Marginal Standing Facility (MSF) rates and Bank rates were adjusted to 5.15 percent and 5.65 percent accordingly.
The RBI Governor Shaktikanta Das said that “the successive shocks to the global economy are taking a toll. IMF has also revised the global growth projection downwards as the Indian economy continues to struggle with high inflation.”
Shaktikanta added the outflow from India has been $13.3 billion in the current fiscal till date. He noted that the current account deficit will remain within comfortable limits.
