The Reserve Bank of India (RBI) after the three – day Monetary Policy Committee (MPC) meeting has announced hike in repo rate.
RBI Governor Shaktikanta Das has announced that RBI “increases the policy repo rate by 50 basis points to 5.9% with immediate effect.”
Explaining further, Das while addressing the media said, Inflation projection is retained at 6.7% for the current year, with Q2 at 7.1%, Q3 at 6.5% & Q4 at 5.8% with risks evenly balanced. CPI inflation is projected to further reduce to 5% in Q1 of FY 2023-24… Monetary policy must remain alert and nimble,
“High frequency data for the second quarter indicate that economic activity remains resilient, private consumption has been holding up… rural demand is also gaining gradually, investment demand picking up… agriculture sector remains resilient” said the RBI Governor .
On the GDP growth the RBI Governor had this to say , While the real GDP growth in the first quarter of this year turned out to be lower than expectations, nonetheless it was 13.5% & perhaps the highest among the major global economies.
On the raging Rupee vs Dollar comparison, Das observed, During the current FY upto Sept 28, the US dollar has appreciated by 14.5% against a basket of major currencies. The movement of the Indian Rupee has however been orderly compared to most other countries; Indian Rupee depreciated by 7.4% against US dollar.