RBI Monetary Policy: The Reserve Bank of India has announced its monetary policy today. RBI Governor Shaktikanta Das announced today that the repo rate is being increased by 0.35 percent. After this, the repo rate has increased to 6.25 percent. Shaktikanta Das told that 5 out of 6 members of MPC favored increasing the repo rate by majority and after that RBI has decided to increase the repo rate by 0.35 percent. RBI has increased the interest rates for the fifth time in a row.
What will be the effect on the general public
It is important for you to know that after this the EMI of your loan is going to increase and it will become expensive for you to take the loan. Due to increase in the repo rate, the loan rates of banks increase, which affects the customers.
What did RBI Governor Shaktikanta Das say
RBI Governor Shaktikanta Das said that we have come at the end of another challenging year and not only in the country but in many countries of the world the inflation rate has been seen increasing. The supply chain situation in the country is facing challenges due to the global geopolitical situation. Bank credit growth is currently coming in above double digits while the inflation rate remains at upper levels.
What did Shaktikanta Das say about the economy
Shaktikanta Das said that India’s economy will still remain the fastest growing economy and India’s macro economic fundamentals are strong. The economy has benefited from the government’s capex.
What did RBI say on inflation
The RBI governor said that the fixed target of inflation for this year is far away. Although there has been a decrease in the retail inflation rate in October. For the financial year 2023, the inflation rate is estimated to be at 6.7 percent.
What was said about the country’s economic growth rate
Shaktikanta Das said that the estimate for the country’s economic growth rate (GDP) is being reduced from 7 per cent to 6.8 per cent. There are many uncertainties in the global economy right now and it is natural to have an impact on the Indian economy, yet the Indian economy will continue to grow at a fast pace.
RBI has increased rates by 1.90 per cent in the last three MPC meetings.
The Reserve Bank has increased the repo rate by a total of 1.90 per cent in its last three monetary policy committee meetings. Out of this, 40 basis points were increased in May and 50-50 basis points in June and August. Before today the repo rate was at 5.90 per cent and today after the increase of 0.35 per cent in the repo rate, the repo rate has come down to 6.25 per cent.