Correct Answer : 25
The Reserve Bank of India hiked its key repo rate by 25 basis points (bps) on Wednesday (8th February 2023) as expected, saying core inflation remained high. The central bank said that its policy stance remains focused on the withdrawal of accommodation.
In its December monetary policy review, the central bank had raised the key benchmark interest rate by 35 basis points (bps). Since May 2022, the Reserve Bank has increased the short-term lending rate by 250 basis points, including today's, to contain inflation.
RBI Monetary Policy Q1 FY23: New Rates
Following are the revised rates in the RBI Monetary Policy 2023:
Repo Rate : 6.50%
Standing Deposit Facility (SDF) : 6.25%
Marginal Standing Facility (MSF) : 6.75%
Important Takeaways from RBI Monetary Policy Q1 FY 2023 - 2024 :
Governor Shaktikanta Das Core inflation has not changed. As of January 27, 2023, non-food credit growth was up 16.7% from the prior corresponding period. In order to reduce the CPI, we must never waver.
* As the policy likely defied expectations of a dovish turn, bonds declined, with the yield on benchmark 10-year notes jumping by as far as four basis points to 7.36%, while the currency was trading higher.
* In 12 cities, RBI will roll out a prototype programme for coin-operated machines that use QR codes.
* After the RBI policy announcement, the Sensex was trading almost 300 points higher and the Nifty was up 0.6%.
* Current account deficit will remain eminently controllable and moderate in the second half of 2022–2023 : RBI Governor
* In 2022 and thus far this year, the Indian Rupee has remained the least volatile of its Asian counterparts : RBI Governor
* According to the RBI Governor, a rate increase of 25 bps is acceptable at this time, and monetary policy should remain flexible and responsive to inflation.
* According to the RBI, retail inflation will be 6.5% instead of 6.7% in FY23 and 5.3% in FY24.
* Estimated growth of the gross domestic product (GDP) for FY23 was raised to 7% from 6.8%.
* The RBI anticipates 6.4% GDP growth for 2023–2024.
* Rate adjustment for the SDF (Standing Deposit Facility) to 6.25% from 6%.
* Early trading sees the Indian rupee gain 4 paise to 82.66 against the US dollar as traders assess Jerome Powell’s remarks and wait for the Reserve Bank of India to announce its policy...
Source : Mint
