Business
RBI Hikes Repo Rate By 50 Basis Points To 5.9 Per Cent; Revises Down FY23 GDP Growth Forecast To 7 Per Cent
Swarajya Staff
Sep 30, 2022, 10:35 AM | Updated 10:44 AM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
The Reserve Bank of India (RBI) on Friday (30 September) hiked the benchmark lending rate by another 50 basis points to 5.9 per cent.
The hike is part of RBI's efforts to check inflation, which has remained above the central bank's tolerance level for the past 8 months.
With the latest hike, the repo rate or the short term lending rate at which banks borrow from the central bank is now close to 6 per cent.
The decision by the six-member Monetary Policy Committee (MPC) was announced by RBI governor Shaktikanta Das.
This is the fourth consecutive rate hike after a 40 basis points increase in May and 50 basis points hike each in June and August. In all, RBI has raised benchmark rate by 1.90 per cent since May this year.
The RBI also lowered its economic growth projection for FY23 to 7 per cent from earlier estimate of 7.2 per cent.
The central bank retained the inflation projection at 6.7 per cent for the current fiscal.
The Consumer Price Index (CPI) based inflation, which RBI factors in while fixing its benchmark rate, stood at 7 per cent in August. Retail inflation has been ruling above the RBI's comfort level of 6 per cent since January this year.
Das said that the recent correction in global commodity prices if sustained may ease cost pressures in coming months.
(With inputs from PTI)
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.