RBI’s Monetary Policy Highlights: The RBI cited subdued price pressures for the small rate hike after consumer-price inflation fell to a three-month low of 6.77 percent in October from a year ago.
The Reserve Bank of India raised its key lending rate by a more modest 35 basis points to 6.25 percent, citing subdued inflation, after three consecutive 50-bps (basis points) hikes to contain price pressures that have remained above the upper end. Its target band
RBI MPC Meet Highlights: The Reserve Bank of India (RBI) on Wednesday hiked the policy repo rate – for the fifth consecutive time – by 35 basis points to 6.25%. The key interest rate has been hiked three times since June by 50 basis points and once – by 40 basis points – for a total of 190 basis points during the off-cycle meet in May. The central bank hiked rates after inflation continued to remain above its tolerance band.
Governor Shaktikanta Das, delivering the Monetary Policy Committee (MPC) announcements, also said that the FY23 real GDP estimate was 6.8% – 0.1% lower than the revised estimate released by the World Bank on Tuesday. Further, the RBI also maintained the FY23 Consumer Price Index (CPI) inflation forecast at 6.7% and Das said he expects inflation to remain moderate as the winter harvest arrives.
The RBI chief hailed the performance of the Indian economy in dealing with global challenges like the war in Ukraine and the Covid-19 pandemic and asserted that it is the fastest growing in Asia this year.