The Reserve Bank of India on Wednesday hiked the repo rate by 25 basis points to 6.5%, Governor Shaktikanta Das announced the decision of the monetary policy committee which was passed by a majority of 4 members of 6 members.
This year’s first Monetary Policy Statement was released at this time. The repo rate increased by 0.35 percentage points to 6.25% in December 2022. The 3.35% reverse repo rate remained unchanged. Real GDP growth is anticipated to be 6.4% between 2023 and 2024, with Q1 growth estimated to be 7.8%, Q2-6.2%, Q3-6% and Q4-5.8%.
The marginal standing facility rate and the bank rate will remain unchanged at 6.75% and 6.25%, respectively. By a vote of 4 out of 6 members, the MPC also resolved to continue concentrating on the withdrawal of accommodation in order to maintain target inflation going forward while promoting growth.
The picture for the world economy is not as bleak as it was a few months ago, according to Das. Major economies continue to have high inflation rates. Das stated the situation is still unstable and volatile.
According to RBI Governor Shaktikanta Das, the Indian economy is still strong, and in 2023–2023, real GDP growth is anticipated to expand by 7%.
“Looking ahead, while inflation is expected to moderate in 2023-24, it is likely to roll above the 4% target. The outlook is clouded by continuing uncertainties from geopolitical tensions, global financial market volatility, rising non-oil commodity prices and volatile crude oil prices,” Das said.
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