New Delhi: The Reserve Bank of India on Friday hiked the repo rate by 50 basis points to 5.4%.
RBI Governor Shaktikanta Das also showcased the GDP growth projections for 2022-23 at 7.2%.
“The real GDP growth projection for 2022-23 is retained at 7.2% with Q1- 16.2%, Q2- 6.2%, Q3 -4.1% and Q4- 4% with risks broadly balanced. The real GDP growth for Q1 2023-24 is projected at 6.7%, Shaktikanta Das said.
HIGHLIGHTS
- Today’s hike takes the repo rate above pre-pandemic levels of 5.15 per cent.
- Inflation is projected at 6.7% in 2022-23; CPI inflation for Q1- 2023-24 is projected at 5%
- FDI at 13.6 billion dollars in the first quarter of the current financial year was robust, as compared to 11.6 billion dollars in the first quarter of last year: RBI Governor Shaktikanta Das
- Despite the drawdown of foreign exchange reserves to limit rupee volatility, India’s reserves remain the fourth largest globally: RBI Governor Shaktikanta Das
- In line with the global trend of monetary policy tightening to cool off inflation, the RBI has so far hiked the key repo rates — the rate at which the central bank of a country lends money to commercial banks — by 140 basis points.