LIVE: RBI Monetary Policy Review Outcome - Another rate hike of 50 bps announced! What all MPC recommended - Key things to know
LIVE UPDATES: RBI Monetary Policy Review MPC Meeting: RBI Governor Shaktikanta Das has announced the MPC decision. RBI has hiked the benchmark lending rate by 50 basis points to 5.90 per cent. The Reserve Bank's rate-setting panel had started its 3-day deliberations on Wednesday amid expectations of yet another rate hike of 50 basis points to check high inflation, in line with similar actions taken by other major central banks, including the US Fed. Based on the recommendations of the Monetary Policy Committee (MPC), the RBI had effected 50 basis points increase in repo rate each in June and August after raising the short-term lending rate by 40 basis points in an off-cycle decision in May. Here are all the LIVE UPDATES on RBI Monetary Policy Review MPC Meeting:-
LIVE UPDATES: RBI Monetary Policy Review MPC Meeting: RBI Governor Shaktikanta Das has announced the MPC decision. RBI has hiked the benchmark lending rate by 50 basis points to 5.90 per cent. The Reserve Bank's rate-setting panel had started its 3-day deliberations on Wednesday amid expectations of yet another rate hike of 50 basis points to check high inflation, in line with similar actions taken by other major central banks, including the US Fed. Based on the recommendations of the Monetary Policy Committee (MPC), the RBI had effected 50 basis points increase in repo rate each in June and August after raising the short-term lending rate by 40 basis points in an off-cycle decision in May. Here are all the LIVE UPDATES on RBI Monetary Policy Review MPC Meeting:-
Latest Updates
RBI retains inflation projection for FY23 at 6.7 pc
The Reserve Bank on Friday retained its inflation projection for current fiscal year at 6.7 per cent amid global geopolitical developments triggered by Russia-Ukraine war. RBI Governor Shaktikanta Das said the impact of inflation globally is weighing heavily on the domestic market.
For September quarter of 2022-23, RBI projected retail inflation at 7.1 per cent.
For third quarter, inflation is estimated at 6.5 per cent and further down to 5.8 per cent in March quarter with risks evenly balanced, the governor said.
For first quarter of next fiscal year, retail inflation is forecast at 5 per cent. The RBI on Friday raised the benchmark lending repo rate by 50 basis points to 5.9 per cent. The central bank has the mandate to keep retail inflation in a band of 2-6 per cent.
RBI cuts growth forecast to 7% for current fiscal
The Reserve Bank of India on Friday slashed the growth projection to 7 per cent for the current fiscal from the earlier forecast of 7.2 per cent, citing aggressive tightening of monetary policies globally and moderation in demand. Unveiling the fifth monetary policy for this fiscal, RBI Governor Shaktikanta Das said the central bank remains committed to price stability to put the country on the sustained path of growth.
Real GDP growth in the first quarter of the current fiscal was 13.5 per cent.
Das, however, cautioned that there is a third wave of shock globally triggered by aggressive monetary policy tightening to curb inflation.
The central bank in April slashed the real GDP growth projection to 7.2 per cent from its earlier forecast of 7.8 per cent for 2022-23.
The latest RBI action follows the US Federal Reserve effecting the third consecutive 0.75 percentage point interest rate increase, taking its benchmark rate to a range of 3-3.25 per cent earlier this month.
Das retained the inflation projection at 6.7 per cent for the current fiscal while slashing real GDP growth estimate to 7 per cent from earlier forecast of 7.2 per cent for FY'23.
The Consumer Price Index (CPI) based inflation, which RBI factors in while fixing its benchmark rate, stood at 7 per cent in August. Retail inflation has been ruling above the RBI's comfort level of 6 per cent since January this year.
The six-member Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das decided in favour of the rate hike.
This is the fourth consecutive rate hike after a 40 basis points increase in May and 50 basis points hike each in June and August. In all, RBI has raised benchmark rate by 1.90 per cent since May this year.
With the latest hike, the repo rate or the short term lending rate at which banks borrow from the central bank is now close to 6 per cent.
The Reserve Bank of India (RBI) on Friday raised the benchmark lending rate by 50 basis points to 5.90 per cent in a bid to check inflation, which has remained above its tolerance level for the past 8 months.
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