Tag: rbi repo rate

A heightened pace of policy tightening by central banks in advanced economies is increasing pressure on the RBI to continue front-loading rate hikes in order to maintain adequate interest rate differentials, analysts opined. Also, many financial experts expect the RBI to lower the GDP growth estimate to 7%. The Reserve Bank of India’s (RBI’s) Monetary Policy Committee (MPC) is likely to lift the policy repo rate by 35-50 basis points (bps) on September 30, as it seeks to bring back elevated domestic inflation within its target range.

RBI Governor Shaktikanta Das today(4 May 2022) said the Monetary Policy Committee (MPC) has unanimously voted to increase the repo rate by 40 basis points to 4.40 percent with immediate effect. The Governor said that the MPC has also decided to remain accommodative while focusing on withdrawal of accommodation to ensure that inflation remains within the target going forward while supporting growth. Consequently, the standing deposit facility (SDF) rate stands adjusted to 4.15 percent and the marginal standing facility rate (MSF) to 4.65 percent. Read more