The latest from the RBI’s Monetary Policy Committee in real-time. A 50-basis-point hike in the repo rate was announced at the end of a three-day meeting of the monetary policy committee on June 8 by the Reserve Bank of India (RBI). There had been many polls, including one by Moneycontrol, that predicted a 40-bps increase. At an earlier unplanned meeting in early May, the MPC had unanimously decided to raise the overnight lending rate by 40 basis points in anticipation of sharp increases in April inflation. When the Reserve Bank of India lends short-term funds to banks, it sets the repo rate.
Headline retail inflation is expected to average 6.3% in April-June, 5.8% between July and September, 5.4% between October and December, and 4.1% between January and March 2023, according to the RBI’s most recent prediction.
Ahead, here are the top ten quotes from Shaktikanta Das’s remarks:
A 50-basis-point increase was made to the Standing Deposit Facility and Marginal Standing Facility rates. In addition, the Marginal Standing Deposit Facility rate has risen to 5.15 percent.
To keep inflation on track and within target, the MPC agreed unanimously to keep its attention focused on withdrawing accommodation.
This year’s GDP growth projection was maintained at 7.2%. For April-June, the GDP growth rate is expected to be 16.2 percent. From July-September, GDP growth is expected to be 6.2 percent. For the months of October through December, GDP growth is expected to be 4.1%. For the period January to March 2023, the GDP is expected to expand by 4%.
– RBI Governor Shaktikanta Das: The CPI inflation projection for FY23 has been revised upwards from 5.7 percent to 6.7 percent, according to a press release. The RBI’s inflation prediction is based on a regular monsoon and a crude oil basket price of $105 per barrel.
– The RBI would provide adequate liquidity in the banking system while normalizing pandemic-related actions.
The RBI keeps a careful eye on the market for government securities. When necessary, we will take action.
Foreign exchange reserves in the Indian economy remained at $601.1 billion as of June 3.
– Urban and rural co-operative banks are raising the limits on individual house loans by more than 100% in response to the recent spike in housing prices.
A new limit of Rs 15,000 has been added to recurring e-payments to make transactions like subscriptions more convenient.
For the first time ever, credit cards can now be linked to UPI, starting with RuPay credit cards.
Source: Money Control