RBI Governor Shaktikanta Das said on Thursday that the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has held the repo rate constant at 4% for the tenth time in a row .
After a unanimous 5:1 vote in favour of keeping interest rates at their current levels, the central bank's governor indicated that the reverse repo rate had also remained constant at 3.35 per cent.
The (Marginal Standing Facility) MSF and bank rates stayed steady at 4.25 percent.
Following the Budget 2022-23 presentation in Parliament on February 1, this is the first MPC meeting since.
To stimulate demand, the central bank dropped its policy repo rate or short-term lending rate to a historic low on May 22, 2020, in an off-policy cycle.
According to Das, India's economy is on a separate path from the rest of the globe, and the country is expected to develop at the quickest rate year-on-year among major countries, according to the International Monetary Fund. Large-scale vaccinations and continuous financial and monetary assistance have helped this recovery to take hold.
Das stated that the real GDP growth for the following fiscal year 2022-23 is expected at 7.8 percent (FY23). Real GDP growth of 9.2% in the current fiscal year (FY22) is expected.
The bi-monthly policy is a response to the FY23 budget, which estimates a nominal GDP of 11.1 percent. The budget estimates nominal gross domestic product (GDP) growth of 11.1% in 2022-23, which is in line with the bimonthly policy.
The CPI inflation forecast for the current fiscal year 2021-22 (FY22) has been maintained at 5.3 percent, while the retail inflation forecast for the next fiscal year (FY23) has been revised downward to 4.5 percent. CPI for the quarters of FY23 is expected to rise by 4.9 percent, 5.0 percent, 4.0 percent, and 4.2 percent respectively. Though food costs have eased, rising oil prices pose a major risk to the economy's long-term outlook.
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