
From repo rate hike to growth outlook: Key takeaways from RBI's monetary policy review
India TodayThe Reserve Bank of India on Wednesday hiked the key repo rate by 25 basis points to 6.5 per cent as expected, but indicated that it could go for further tightening if core inflation continues to remain high. RBI Governor Shaktikanta Das said, “Based on an assessment of the macroeconomic situation and its outlook, the MPC decided by a majority of 4 members out of 6 to increase the policy repo rate by 25 basis points to 6.50 per cent, with immediate effect.” The RBI governor also said the standing deposit facility rate will stand revised to 6.25 per cent; and the marginal standing facility rate and the Bank Rate to 6.75 per cent. While this will be the last rate hike of FY23, Shaktikanta Das said the Monetary Policy Committee will “ continue to maintain strong vigil on the evolving inflation outlook so as to ensure that it remains within the tolerance band and progressively aligns with the target”. India’s growth remains resilient, but caution needed RBI Governor Shaktikanta Das also said that India’s growth remains resilient even as several global economies continue to remain under pressure.
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