In the June MPC meeting, the Reserve Bank of India (RBI) raised the policy repo rate by 0.5 percent, or 50 basis points. Previously, the first meeting of the Monetary Policy Committee (MPC) for the fiscal year 2022-23, held in April 2022, had kept the policy repo rate at 4%.
RBI’s surprise repo rate hike occurred in May 2022, when the policy rate was raised from 4% to 4.40% after the announcement of a 0.40% increase. The policy rate is 4.90 percent as of June 2022.
Das stated that the real GDP growth rate has been maintained at 7.2 percent. Despite the ongoing conflict and the virus, the governor stated that the Indian economy has remained resilient and that the economic recovery has gained speed.
However, inflation rose, with a substantial part of the increase owing to a supply shortfall caused by the war. Inflation is expected to be 6.7 percent this year, according to Das. It was previously predicted to be 5.7 percent.
