Mumbai: Reserve Bank of India (RBI) today kept the repo rate unchanged at 4 per cent for the 11th time in a row. The reverse repo rate has also been kept unchanged at 3.35 per cent. This is the first bi-monthly policy for the current financial year 2022-23.
Real GDP growth is projected at 7.2 per cent for 2022-2023 from a previous projection of 7.8 per cent; while retail inflation is predicted at 5.7 per cent for FY23 from 4.5 per cent earlier, the apex bank further said.
Governor Shaktikanta Das has said that RBI is braced to defend the Indian economy. ‘We are not hostage to any rulebook. No action is off the table when the need is to safeguard the Indian economy,’ Das said while announcing the Monetary Policy Committee (MPC) report.
Das said the Reserve Bank will continue to adopt nuanced, nimble approach to liquidity management while ensuring adequate liquidity in system. Das added that the central bank will engage in gradual, multi-year withdrawal of Rs 8.5 lakh crore excess liquidity in system.
Shaktikanta Das said the global economy is seeing ‘tectonic shifts’ from the war and extreme volatility in commodity and financial markets. The revision in estimates is is based on the assumption of crude at $100.
RBI has held the key repo rate at record lows since May 2020 and reiterated time and again that it will remain supportive of economic growth.
The Governor said the system of cardless cash withdrawal will be made available across all banks and ATM networks using UPI. Das also said that net worth requirement for Bharat Bill Payments System Operating Units has been lowered from Rs 100 crore to Rs 25 crore.