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RBI hikes repo rate by 50 basis points to 5.4% with immediate effect

The three-day monetary policy committee meeting commenced on Wednesday.

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New Delhi: Reserve Bank of India (RBI) hiked the repo rate by 50 basis points to 5.4% with immediate effect.

RBI Governor said MPC has taken unanimous decision to raise benchmark lending rate by 50 bps to 5.40 pc.

RBI Governor Shaktikanta Das further said, “The real GDP growth projection for 2022-23 is retained at 7.2% with Q1- 16.2%, Q2- 6.2%, Q3 -4.1% and Q4- 4% with risks broadly balanced. The real GDP growth for Q1 2023-24 is projected at 6.7%.”

“Inflation is projected at 6.7% in 2022-23; CPI inflation for Q1- 2023-24 is projected at 5%,” he said.

The three-day monetary policy committee meeting commenced on Wednesday.

Today’s hike takes the repo rate above pre-pandemic levels of 5.15 per cent.

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In line with the global trend of monetary policy tightening to cool off inflation, the RBI has so far hiked the key repo rates — the rate at which the central bank of a country lends money to commercial banks — by 140 basis points.

 

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