RBI Monetary Policy Live Updates: RBI Repo Rate & GDP Growth Forecast

Here are the live updates about the RBI Monetary Policy. The Reserve Bank of India has hiked the repo rate by 50 BPS to 5.4%. The GDP growth forecast retained at 7.2%.

FY23 GDP Growth Forecast Retained At 7.2%

Governor Shaktikanta Das stated on August 5 that the Reserve Bank of India (RBI) has maintained its GDP growth prediction of 7.2 percent for FY23.

Das stated that the Indian economy was exhibiting signs of expansion and that high-frequency data suggested an improvement in urban demand in his bimonthly talk, which announced the Monetary Policy Committee’s (MPC) interest rate decision.

The RBI kept the quarterly predictions as well as the prediction of growth for the entire year. 

Therefore, GDP growth is anticipated to be 16.2% in April–June, 6.2 in July–September, 4.1 in October–December, and 4.0 in January–March 2023.

The governor predicted that GDP growth will then accelerate, reaching 6.7 % in the 2nd quarter of 2023.

RBI Hikes Repo Rate By 50 BPS To 5.4%

The key lending rate, or repo rate, was increased by 50 basis points (bps) by the Reserve Bank of India’s (RBI) rate-setting panel, bringing the policy rate back to levels from late 2019. 100ths of a percentage point is one basis point (bps).

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The 6-members Monetary Policy Committee (MPC) recently increased the repo rate, which is presently at 5.4 percent.

What Is RBI Repo Rate?

Repo refers to the interest rate at which the central bank lends banks short-term money. Usually, changes to this rate are communicated to the larger banking system.