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

by Swarajya Staff - Jun 8, 2022 10:57 AM +05:30 IST
RBI Hikes Interest Rate By 50 Basis Points To Tame Inflation; Retains Real GDP Growth Projection For FY23 At 7.2 Per CentRBI headquarters in Mumbai. (INDRANIL MUKHERJEE/AFP/Getty Images)

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.

Consumer Price Index (CPI) based inflation, which RBI factors in while arriving at its monetary policy, galloped for the seventh straight month to touch an 8-year high of 7.79 per cent in April.

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)

Get Swarajya in your inbox everyday. Subscribe here.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Comments ↓
Get Swarajya in your inbox everyday. Subscribe here.
Advertisement

Latest Articles

    Artboard 4Created with Sketch.