After two long days meeting the central bank of India has issued its Monetary Policy Committee (MPC) guideline today. Speaking on the occasion the Governor of Reserve Bank of India (RBI) Mr. Shaktikant Das has announced the detailed guideline and way ahead for Indian economy and the markets. The Reserve Bank is concerned about the volatility in the world economy and has taken its steps for betterment of Indian economy and the Rupee. This announcement of RBI came after the United States central bank Federal Reserve announced their policy decisions during early this week increasing their interest rate.
The key highlights of RBI’s MPC announcement today are :
- RBI has increased the Repo Rate by 50 bps to 5.90%.
- Standing Deposit Facility Rate is set at 5.65%.
- Marginal Standing Facility (MSF) rate & Bank Rate has been brought to 6.15% from 5.65%.
- RBI retained its CPI projection for FY22-23 at 6.7%.
- Inflation will remain high during H2 FY22-23 at around 6%.
- GDP growth projection has been brought down to 7.0% from earlier projection of 7.2%.
- RBI remains focused on withdrawal of Accommodation.
- Key focus of central bank is to control present inflation and arrest falling of Rupee due to present global turmoil.
With today’s accouchement, RBI’s MPC have hiked Repo Rates by 190 bps since May-2022 aligning with global economic changes from time to time.