RBI hikes repo rate by 0.35 percent, cuts growth forecast

RBI new repo rate by Shaktikant Das

New Delhi:

The Reserve Bank of India (RBI) on Wednesday decided to increase the policy rate repo by 0.35 percent to 6.25 percent in the bi-monthly monetary policy review. RBI has taken this step with the aim of controlling inflation amid global uncertainties. Along with this, the central bank has reduced the estimate of the growth rate of gross domestic product (GDP) for the current financial year 2022-23 from seven percent to 6.8 percent. An increase in the repo rate means that borrowing from banks and financial institutions will be costlier and the monthly installment (EMI) of existing loans will increase.

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Giving information about the decision taken in the three-day meeting of the Monetary Policy Committee (MPC), RBI Governor Shaktikanta Das said in a televised statement, “Considering the current economic situation, the MPC has increased the policy rate repo by 0.35 percent to 6.25 percent.” Have decided to do.

RBI has increased the repo rate by 2.25 percent five times since May this year mainly to control inflation. Das said that retail inflation will remain at 6.7 percent in the current financial year. This is higher than the central bank’s satisfactory level of six per cent.

Das said that with core inflation still high, there is a need for prudence at the level of monetary policy. The Reserve Bank (RBI) on Wednesday decided to increase the policy rate repo by 0.35 percent to 6.25 percent in the bi-monthly monetary policy review. RBI has taken this step with the aim of controlling inflation amid global uncertainties. Along with this, the central bank has reduced the GDP growth forecast for the current financial year 2022-23 from seven percent to 6.8 percent.

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An increase in the repo rate means that borrowing from banks and financial institutions will be costlier and the monthly installment (EMI) of existing loans will increase.

Giving information about the decision taken in the three-day meeting of the Monetary Policy Committee (MPC), RBI Governor Shaktikanta Das said in a televised statement, “Considering the current economic situation, the MPC has increased the policy rate repo by 0.35 percent to 6.25 percent.” Have decided to do.

RBI has increased the repo rate by 2.25 per cent five times since May this year mainly to control inflation.

Das said that retail inflation in the current financial year

Will remain at 6.7 percent. This is higher than the central bank’s satisfactory level of six per cent.

Das said with core inflation still remaining high, there is a need for prudence at the monetary policy level.

Raman Ajay

Ajay

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