Key takeaways of RBI Governor Shaktikanta Das' address after Monetary Policy Committee meeting

Key takeaways of RBI Governor Shaktikanta Das' address after Monetary Policy Committee meeting

Reserve Bank of India Governor Shaktikanta Das announced on Wednesday that RBI has increased the repo rate by 25 basis points to 6.5%

FPJ Web DeskUpdated: Wednesday, February 08, 2023, 11:05 AM IST
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Reserve Bank of India (RBI) Governor Shaktikanta Das | Image: File

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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