In the Monetary Policy Committee’s (MPC’s) statement on Friday The Reserve Bank of India declared a fee hike of 50 basis points to 5.40%, this is the highest after 2019. The bi-monthly meeting of the RBI MPC held on Wednesday, and Shaktikanta Das, the governor of RBI declared that the MPC with one mind choose to increase the policy rate.Das expressed that MPC decided to aim on withdrawal of accommodation to keep inflation within target while encouraging growth. RBI MPC amended the Marginal Standing Facility (MSF) and bank fee to 5.65% earlier it was 5.15%,
Governor added the real GDP projection for FY23 was preserved at 7.2% with Q1 at 16.2 %, Q2 at 6.2 %, Q3 at 4.1%, Q4 at 4%, with dangers broadly stabilized, .He further added that the consumer cost inflation persist uncomfortably high and inflation is expected to carry on above 6%. He forecasted that CPI inflation for the ongoing fiscal year at 6.7% and that for FY 2023-24 at 5%.RBIs rate hike, came in a offer to reduce the inflationary pressure and shield against further rupee depreciation. In its off-cycle monetary policy review in the month of May, the Central Bank had increased the policy repo rate by 40 basis points or 0.40% to 4.40%. Then in the month of June, the RBI further increased the rate to 4.90%, a 50 basis points increase.