Reserve Bank of India (RBI) on Wednesday raised the key policy (repo) rate by 50 basis points (bps) to 4.90 per cent in its June bi-monthly meeting. The central bank is likely to concentrate interest rate hikes over the coming months in a relatively short tightening cycle. In a recent interview, RBI Governor Shaktikanta Das said that the expectation of rate hikes in June is a “no-brainer”.
Here are the live updates on RBI policy meet:
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RBI permits rural co-operative banks to extend finance to commercial real estate; allows urban co-operative banks allowed to provide door-step banking services
Overall situation remains challenging, committed to dealing with challenges emanating from overseas: RBI Governor
RBI raises inflation forecast to 6.7 per cent for 2022-23 from an earlier estimate of 5.7 per cent
Upside risk to inflation persists; a recent spike in tomato, crude prices fuelling inflation: RBI chief
GDP growth is retained at 7.2 per cent for the current fiscal (2022-23): RBI Governor
Market Update: As of 10:19 am, Sensex fell 160 points to trade at 54,947 after RBI hiked key lending rate, Nifty down 40 points to trade at 16,377
Inflation likely to remain above 6 per cent in first three quarters of current fiscal (2022-23): RBI Governor
Our steps will be calibrated, focussed on bringing down inflation 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 per cent
RBI hikes key lending rate by 50 basis points to 4.90 per cent
“Russia-Ukraine war has led to globalisation of inflation. During such challenging times, Indian economy has remained resilient”: RBI Governor Shaktikanta Das.
Retail inflation surged to an eight-year high of 7.79 per cent in April. It has been above 6 per cent since January 2022.
Inflation has been above the RBI’s 2-6 per cent target band since the beginning of this year.
The six-member Monetary Policy Committee (MPC) of RBI is certain to hike the policy interest rates as inflation has remained above the central bank’s tolerance limit for the past several months.
RBI is likely to hike the policy repo rate by 40 basis points to 4.80 per cent today increase the inflation forecast for the current fiscal to above 6 per cent from its earlier projection of 5.7 per cent, according to market analysts and economists. Repo rate is the interest rate at which the RBI lends short-term funds to banks.