Winning Bizness Desk
Mumbai. The Reserve Bank has once again given priority to controlling inflation over economic growth and therefore it has sharply increased the repo rates by half a percentage point. With this, the repo rates have increased to 5.4 percent. That is, the prime rates have now reached the level before the pandemic. With this decision, there is bound to be an increase in EMI and it is possible that in the next few days, its announcements will start from the banks.
What are the important things of RBI policy
- The Reserve Bank has increased the repo rates by half a percentage point to 5.4%.
- The new rates are applicable with immediate effect
- SDF rates raised from 4.65 percent to 5.15 percent
- MSF rates raised from 5.15 percent to 5.65 percent
- Inflation is expected to remain high in the second and third quarters as well.
- GDP growth estimated at 7.2 percent in the year 2022-23
- Inflation forecast for the current financial year stable at 6.7 percent
Concerns about inflation and recession
The Reserve Bank Governor Das, while expressing concern about rising inflation and recession around the world, said that the emerging economy is facing a number of challenges which include weak domestic currency and foreign fund outflows and depleting foreign exchange reserves. According to the governor, India is also facing such challenges. However, he said that in the coming times, conditions will be better for India and inflation will also come down. Many indicators related to the economy are giving better indications than Governor Shaktikanta Das. At present, the position of foreign exchange reserves and liquidity in the system is strong.
Repo rates hiked for the third time in a row
The Reserve Bank has increased the repo rates for the third time in a row today, before the rates were increased by half a percent in the June policy. At the same time, with an unexpected decision in May, rates had increased by 0.4 percent in between two policy reviews. With today's increase, the repo rates have increased by 1.4 percent, before this, during the period of Corona, the Reserve Bank did not change the rates for 11 consecutive times. In its address, the Reserve Bank has indicated that there will be a further increase in rates.