BREAKING: RBI Monetary Policy: Bad news for borrowers, RBI hikes repo rates by 50 basis points to 5.40%

New Delhi: In a move that will further raise the cost of borrowing for corporates and individuals, RBI’s Monetary Policy Committee led by Governor Shaktikanta Das on Friday raised the repo rate by 50 basis points to 5.40 per cent. Repo is the rate at which reserve Bank of India Lends money to commercial banks […]
 


BREAKING: RBI Monetary Policy: Bad news for borrowers, RBI hikes repo rates by 50 basis points to 5.40%

New Delhi: In a move that will further raise the cost of borrowing for corporates and individuals, RBI’s Monetary Policy Committee led by Governor Shaktikanta Das on Friday raised the repo rate by 50 basis points to 5.40 per cent.

Repo is the rate at which reserve Bank of India Lends money to commercial banks when needed. It is a tool used by the central bank to control inflation. This is the third hike since the start of the current fiscal, taking the rate back to pre-pandemic levels to ease inflationary pressures.

Real GDP Growth Estimates for 2022-23 Q1- 16.2 per cent, Q2- at 6.2 per cent, Q3 -4.1 per cent and Q4- 4 per cent at 7.2 per cent have been maintained with broadly balanced risks. RBI Governor Shaktikanta Das while addressing a press conference said that the real GDP growth for Q1 2023-24 is estimated at 6.7 per cent.

Das also said that consumer price inflation remains uncomfortably high, while inflation is expected to remain above 6 per cent.

The six-member Monetary Policy Committee headed by Reserve Bank of India Governor Shaktikanta Das on Wednesday began deliberations on the bi-monthly policy review.