RBI Hikes Interest Rate By 50 Basis Points To Tame Inflation; Retains Real GDP Growth Projection For FY23 At 7.2 Per Cent

Reserve Bank of India (RBI) on Wednesday raised the interest rate by 50 basis points (bps) to a two-year high of 4.9 per cent as it doubled down to tame inflation that has surged in the last couple of months.

The rate hike comes on the back of a 40 bps increase effected by RBI at an unscheduled meeting on 4 May.

All the six members of the Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das, unanimously voted for the latest rate hike.

The RBI also retained the projected real GDP growth at 7.2 per cent on account of strengthening of recovery in domestic economic activity and likely normal monsoon among other factors.

"The real GDP growth projection for 2022-23 is retained at 7.2 per cent, with Q1 at 16.2 per cent; Q2 at 6.2 per cent; Q3 at 4.1 per cent; and Q4 at 4.0 per cent, with risks broadly balanced," RBI said in a press release.

(With inputs from PTI)