RBI raises repo rate by 25 basis points to 6.5% from 6.25%
The Reserve Bank of India-led Monetary Policy Committee on Wednesday increased the repo rate, or the key rate at which the RBI lends short-term funds to commercial banks, to 6.50 per cent from 6.25 per cent
RBI Governor Shaktikanta Das. ANI
New Delhi: The Reserve Bank of India-led Monetary Policy Committee on Wednesday raised the country’s policy rate by 25 basis points in its last policy review of the fiscal year (FY23) amid moderating inflation.
The panel increased the repo rate, or the key rate at which the RBI lends short-term funds to commercial banks, to 6.50 per cent from 6.25 per cent.
With this, the repo rate has been hiked for the sixth time in a row.
“Unprecedented events of the last three years have put to test monetary policy across the world. Emerging market economies are facing sharp tradeoffs between supporting economic activity and controlling inflation while preserving policy credibility,” said RBI Governor Shaktikanta Das.
Unprecedented events of the last three years have put to test monetary policy across the world. Emerging market economies are facing sharp tradeoffs between supporting economic activity and controlling inflation while preserving policy credibility: RBI Governor Shaktikanta Das pic.twitter.com/1oHOMJXF2W
— ANI (@ANI) February 8, 2023
The RBI Governor said that the inflation is expected to average 5.6 per cent in the 4th quarter of 2023-24.
“The global economic outlook doesn’t look as grim now as it did a few months ago, growth prospects in major economies have improved while inflation is on a descent though inflation still remains well-above the target in major economies,” said the RBI Governor.
Das said that the real GDP growth for 2023-24 is projected at 6.4 per cent with Q1 at 7.8 per cent, Q2 at 6.2 per cent, Q3 at 6 per cent and Q4 at 5.8 per cent.
With inputs from agencies
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