Jun 08, 2022 / 01:03 pm
RBI Monetary Policy Committee LIVE Updates | The Reserve Bank of India (RBI) has raised the repo rate by 50 basis points, an increase for the second time in five weeks at the conclusion of the monetary policy committee's three-day meeting on June 8. The move was not a surprise as multiple polls, including a poll of 15 economists by Moneycontrol said they expected a 40 bps rise.
Earlier, the monetary policy committee (MPC) had held an unscheduled meeting in early May and
voted unanimously for a 40 basis point repo rate hike
in anticipation of a huge increase in April inflation. The repo is the rate at which the RBI lends short-term funds to banks.
The RBI's most recent forecast, released in April, had said headline retail inflation would average 6.3 percent in April-June, 5.8 percent in July-September, 5.4 percent in October-December, and 5.1 percent in January-March 2023.
Here are top 10 highlights from RBI Governor Shaktikanta Das' speech:
- The Standing Deposit Facility and Marginal Standing Facility rates raised by 50 basis points. The Standing Deposit Facility rate is now 4.65 percent, and the Marginal Standing Facility rate now 5.15 percent.
- MPC voted unanimously to remain focused on the withdrawal of accommodation to ensure inflation remains within target going forward.
- GDP growth forecast for FY23 retained at 7.2 percent. GDP growth forecast at 16.2 percent for April-June. GDP growth forecast at 6.2 percent for July-September. GDP growth forecast at 4.1 percent for October-December. GDP growth forecast at 4.0 percent for January-March 2023.
- RBI Governor Shaktikanta Das: CPI inflation forecast for FY23 raised to 6.7 percent from 5.7 percent. RBI Inflation forecast assumes normal monsoon and crude basket price at $105/barrel
- While normalising pandemic-related measures, RBI will ensure adequate liquidity in the banking system
- RBI monitoring government securities market very closely. We will take necessary steps as and when required.
- As on June 3, India's foreign exchange reserves stood at $601.1 billion.
- Limits on individual home loans given by urban and rural co-operative banks are being revised upwards more than 100 percent taking into account the rise in housing prices over the last decade.
- The limit on recurring e-payments is now raised to Rs 15,000 from Rs 5,000 to further facilitate transactions such as subscriptions.
- Credit cards, starting with RuPay credit cards, can now be linked to UPI.