18 key takeaways from the RBI Monetary Policy


India

oi-Vicky Nanjappa

|

Published: Friday, August 5, 2022, 12:34 [IST]

Google One India News

Mumbai,
Aug
05:

The
Reserve
Bank
of
India
(RBI)
on
Friday
raised
the
benchmark
lending
rate
by
50
basis
points
to
5.40
per
cent
to
tame
inflation,
news
agency
PTI
reported.

18 key takeaways from the RBI Monetary Policy

Following
are
the
highlights
of
the
RBI’s
fourth
monetary
policy
review
of
fiscal
year
2022-23
announced
by
Governor
Shaktikanta
Das:

RBI raises repo rate by 50 bps to 5.4%, third increase in a rowRBI
raises
repo
rate
by
50
bps
to
5.4%,
third
increase
in
a
row

  • Key
    short-term
    lending
    rate
    (repo)
    raised
    by
    50
    basis
    points
    (bps)
    to
    5.4
    per
    cent;
    third
    consecutive
    hike

  • In
    all,
    140
    bps
    hike
    in
    repo
    since
    May
    2022
    to
    check
    inflation

  • GDP
    growth
    projection
    for
    2022-23
    retained
    at
    7.2
    per
    cent
    (pc).

  • GDP
    growth
    projection:
    Q1
    at
    16.2
    pc;
    Q2
    at
    6.2
    pc;
    Q3
    at
    4.1
    pc;
    and
    Q4
    at
    4
    pc

  • Real
    GDP
    growth
    for
    Q1:2023-24
    projected
    at
    6.7
    per
    cent

  • Domestic
    economic
    activity
    exhibiting
    signs
    of
    broadening

  • Retail
    inflation
    projection
    too
    retained
    at
    6.7
    pc
    for
    2022-23

  • Inflation
    projection:
    Q2
    at
    7.1
    pc;
    Q3
    at
    6.4
    pc;
    and
    Q4
    at
    5.8
    pc;
    Q1:2023-24
    at
    5
    pc

  • India
    witnessed
    large
    portfolio
    outflows
    of
    USD
    13.3
    billion
    in
    FY23
    up
    to
    August
    3

  • Financial
    sector
    well
    capitalised
    and
    sound

  • India’s
    foreign
    exchange
    reserves
    provide
    insurance
    against
    global
    spillovers

  • Monetary
    Policy
    Committee
    decides
    to
    remain
    focused
    on
    withdrawal
    of
    accommodative
    stance
    to
    check
    inflation

  • Depreciation
    of
    rupee
    more
    on
    account
    of
    appreciation
    of
    US
    dollar
    rather
    than
    weakness
    in
    macroeconomic
    fundamentals
    of
    the
    Indian
    economy

  • RBI
    to
    remain
    watchful
    and
    focused
    on
    maintaining
    stability
    of
    rupee

  • Rupee
    depreciated
    by
    4.7
    pc
    against
    US
    dollar
    this
    fiscal
    year
    till
    August
    4

  • India’s
    foreign
    exchange
    reserves
    remain
    fourth
    largest
    globally

  • Mechanism
    to
    be
    activated
    to
    allow
    NRIs
    to
    use
    Bharat
    Bill
    Payment
    System
    for
    payments
    of
    utility
    and
    education
    on
    behalf
    of
    their
    families
    in
    India

  • Next
    meeting
    of
    rate-setting
    panel
    scheduled
    for
    September
    28-30,
    2022.

Story first published: Friday, August 5, 2022, 12:34 [IST]



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