Mumbai: To control inflation, the Reserve Bank of India today raised the repo rate by 50 basis points to 5.4%.
The Monetary Policy Committee (MPC), the rate-setting committee of the Reserve Bank of India, met for three days from August 3 to discuss the current economic situation.
Reserve Bank Governor Shaktikanta Das said the MPC focused on excessive monetary withdrawal to support growth and keep inflation within target.
Similarly, ‘MPC’ has decided to keep the ‘Standing Deposit Facility’ (SDF) rate at 5.15% while the ‘Marginal Standing Rate’ (MSF) rate and bank rate at 5.65%.
Further, real ‘GDP’ growth for 2022-23 is expected to be 7.2% as previously. It is estimated that GDP will be 16.2% in the first three months of the financial year, 6.2% in the second three months, 4.1% in the third three months and 4% in the fourth three months.
According to that, in the first 3 months of 2023-24, the real ‘GDP’ growth is estimated to be 6.7%, said Shaktikanta Das.
Notably, this is the Reserve Bank’s third repo rate hike in the current financial year. The Reserve Bank increased the repo rate by 40 basis points to 4.40% during the ‘Monetary Policy Review’ in May. Then again in June, the Reserve Bank increased the repo rate by 50 basis points to 4.90%.