The Reserve Bank of India (RBI) on Wednesday raised the key (repo) rate by 50 basis points (bps) to 4.90% at its June bi-monthly meeting. The central bank is likely to concentrate interest rate hikes over the next few months in a relatively short tightening cycle. In a recent interview, RBI Governor Shaktikanta Das said the expectation of rate hikes in June is a “no brainer”.
Here are the live updates on the RBI policy meeting:
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Our future action will depend on how the situation develops as it has remained dynamic: RBI chief
Liquidity withdrawal will be calibrated and measured going forward and we will ensure that sufficient liquidity remains available to meet banks’ requirements: RBI Governor
RBI enables rural cooperative banks to extend financing to commercial real estate; authorizes urban cooperative banks to provide home banking services
Overall situation remains difficult, determined to face challenges emanating from abroad: RBI Governor
RBI raises inflation forecast to 6.7% for 2022-23 from earlier estimate of 5.7%
The upside risk to inflation persists; recent tomato surge with crude prices fueling inflation: RBI chief
GDP growth held steady at 7.2% for current financial year (2022-23): RBI Governor
Market Update: At 10:19 am Sensex fell 160 points to trade at 54,947 after RBI raised the key rate, Nifty fell 40 points to trade at 16,377.
Inflation is expected to remain above 6% in the first three quarters of the current financial year (2022-23): RBI Governor
Our measures will be calibrated, focused on bringing inflation down to target level: RBI chief
GDP (gross domestic product) growth estimated at 8.7% in 2021-22: RBI Governor
SDF (Standing Deposit Facility) adjusted to 4.65%
RBI raises policy rate by 50 basis points to 4.90%
“The Russian-Ukrainian war led to the globalization of inflation. During these difficult times, the Indian economy has remained resilient”: RBI Governor Shaktikanta Das.
Retail price inflation hit an eight-year high of 7.79% in April. It has been above 6% since January 2022.
Inflation has been above the RBI’s 2-6% target range since the start of this year.
The RBI’s six-member Monetary Policy Committee (MPC) is certain to raise key interest rates as inflation has remained above the central bank’s tolerance limit for the past few months.
RBI is likely to raise the key rate by 40 basis points to 4.80% today, raising the inflation forecast for the current fiscal year to more than 6% from its previous projection of 5.7%. , according to market analysts and economists. The repo rate is the interest rate at which the RBI lends short-term funds to banks.