Following are the highlights of Reserve Bank of India Governor Shaktikanta Das' address today after the meeting of the central bank's Monetary Policy Committee.
Key takeaways:
* Repo rate raised by 25 bps to 6.50%
* MPC voted with 4:2 majority to raise repo rate
* SDF rate will stand revised at 6.25%
* MPC stance focused on withdrawal of accommodation
* MPC voted on stance by 4:2 majority
* MSF rate will stand revised at 6.75%
* Continued calibrated monetary policy action is warranted
* Monetary policies across world have veered to extremes
* Seen structural changes in growth and inflation dynamics
* Urgent need to reinforce global cooperation
* US dollar has retreated sharply from 2-decade highs
* Several central banks have opted for lower rate hikes
* 2023 marks 75th year of public ownership of RBI
* Opportune moment to reflect on evolution of monetary policy
* Multiple indictor approach was adopted in April 1998
Inflation and growth:
* FY23 inflation projection at 6.5%
* Inflation expected to average 5.6% in Jan-Mar FY23
* Inflation seen 5.6% in Jan-Mar of FY24
* Inflation is on a descent
* Core inflation remains sticky
* Inflation likely to rule over 4% target in FY24
* Continued inflation uncertainties from geopolitical tensions
* Global economic outlook does not look as grim as few months ago
* Growth prospects in major economies have improved
* Economic activity is expected to hold up well
* Recent Budget should support economic activity FY24
* MPC focussed on strengthening medium-term growth prospects
* MPC to maintain strong vigil on inflation outlook
* Rate hikes still working their way through the system
* Available data indicates economic activity remains resilient
* Overall monetary policy conditions remain accommodative
* Discretionary spending on services reviving
* Indicators point to strengthening of activity
* Invest activity continues to gain traction
* Non-food credit rose 16.7% as on Jan 27
* Rural demand continues to show signs of improvement
* Rural demand showing signs of improvement\
With inputs from Agencies.
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