The Reserve Bank of India's Monetary Policy Committee (MPC) has raised the policy repo rate by 35 basis points to 6.25 percent with immediate effect. RBI Governor Shaktikanta Das on December 7 announced that five out of six members of the MPC opted to go for a hike in the rate at the meeting. Here's what RBI Governor announced at MPC briefing.
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“The Monetary Policy Committee meeting met on the 5th, 6th and 7th December. Based on an assessment of macroeconomic situation and its outlook, MPC decided by a majority of five members out of six to increase the policy repo rate by 35 basis points to 6.25 percent with immediate effect.”
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"GDP growth forecast for October-December 2022 has been lowered to 4.4 percent from 4.6 percent; for January-March 2023 it is lowered to 4.2 percent from 4.6 percent; for April-June 2023, it is lowered to 7.1 percent from 7.2 percent; and for July-September 2023, GDP growth is seen at 5.9 percent."
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“The CPI inflation forecast for FY23 is retained at 6.7 percent. The CPI inflation forecast for October-December 2022 has been raised to 6.6 percent from 6.5 percent. The forecast for January-March 2023 is raised to 5.9 percent from 5.8 percent. The forecast for April-June 2023 is retained at 5.0 percent. The CPI inflation is seen at 5.4 percent in July-September 2023.”
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“Standing Deposit Facility rate (SDF), and Marginal Standing Facility (MSF) rate have been increased by 35 basis points each to 6 percent and 6.5 percent.”
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“Inflation is expected to be above 4 percent in the next 12 months.” We will keep an Arjuna’s eye on inflation and we will be ready to act. Our actions will be nimble.”
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“FDI inflows rose to $22.7 billion in April to October 2022 from $21.3 billion in the corresponding period last year.”
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“The Indian rupee has appreciated by 3.2 percent during April-October in real terms, while other major currencies have depreciated.”
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“Forex reserves stand at $561.2 billion as on December 2. The size of our forex reserves is comfortable and has increased.”
