RBI Governor Shaktikanta Das. File | Photo Credit: PTI
The Reserve Bank of India’s Monetary Policy Committee (MPC) decided to increase the repo rate by 25 basis points to 6.5%, Governor Shaktikanta Das announced on February 8.
The RBI Governor said the world economy does not look so grim now and inflation is coming down. “RBI’s MPC decided 4:2 vote to remain focused on withdrawal of accommodative policy,” he said.
Adding that real GDP growth for 2023-24 is projected at 6.4%, he said, “Amid volatile global developments, the Indian economy remains resilient.”
Meanwhile, retail inflation is expected to average 5.6% in Q4 and CPI inflation for 2022-23 is projected at 6.5%, Mr. Das said.
With this, Reserve Bank has increased the short-term lending rate by 250 basis points since May last year to contain inflation, mostly driven by external factors, especially global supply chain disruption, following the Russia-Ukraine war outbreak.
(With PTI inputs)