The Reserve Bank of India has increased the repo rate by 25 Basis points to 6.5 per cent. Since May 2022, the RBI has increased the repo rate by 2.5 per cent. The Monetary Policy Committee headed by RBI Governor Shaktikanta Das decided to increase repo rate by the majority of 4:2.
Announcing the final bi-monthly monetary policy review, RBI Governor Shaktikanta das said, Standing Deposit Facility Rate has been revised to 6.25 per cent and Marginal Standing Facility Rate and Bank Rate revised to 6.75 per cent. He said, RBI will remain focused on withdrawal of accommodation to ensure inflation remains within target, while supporting the growth. Mr. Das said, Inflation for 2022-23 is projected at 6.5 per cent, with inflation for Q4 at 5.7 per cent. CPI inflation for 2023-24 is projected at 5.3 per cent.
The RBI Governor observed that government’s enhanced thrust on capital expenditure and infrastructure in Budget 2023 should support economic activity in the coming year. He said, Indian economy remains resilient amidst volatile global developments, real GDP growth is estimated at 7.0 per cent for 2022-23 as per first account advance estimates of NSO.