RBI MPC Meeting December 2022: The Reserve Bank of India (RBI) has decided to increase the repo rate for the fifth time in order to control inflation in the bi-monthly monetary policy review on Wednesday.
RBI MPC Meeting December 2022: 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.
RBI increased the repo rate again
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 more than the satisfactory level of six percent of the central bank. Das said that with core inflation still high, there is a need for prudence at the level of monetary policy.
Indian economy will grow rapidly despite the decrease in economic growth rate
RBI Governor Das said that after looking into the data, the Reserve Bank will take policy steps based on that. The cash position will improve in the coming months. India continues to be the fastest growing major economy, despite marginally reducing the economic growth rate forecast to 6.8 percent. Amidst the strengthening of the dollar, less volatility is being seen in the rupee than other currencies.
The RBI projected inflation at 6.7 per cent for the current financial year, 6.6 per cent in the third quarter and 5.9 per cent in the fourth quarter. On December 2, it increased to $551.2 billion. On October 21, it was at $ 524 billion.
RBI has increased the repo rate for the fifth time this year.
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 more than the satisfactory level of six percent of the central bank. Das said that with core inflation still high, there is a need for prudence at the level of monetary policy.
