The Reserve Bank of India on Wednesday hiked the repo rate by 25 basis points to 6.5%, Governor Shaktikanta Das announced the decision of the monetary policy committee which was passed by a majority of 4 members of 6 members. This was the first Monetary Policy Statement of the year. In December 2022, the repo rate was raised by 0.35 percentage points to 6.25%. There was no change in the reverse repo rate of 3.35%.
The standing deposit facility rate will stand revised to 6.25% and the marginal standing facility rate and the bank rate to 6.75%. The MPC also decided by a majority of 4 out of 6 to remain focussed on the withdrawal of accommodation to ensure that inflation remains within target going forward while supporting growth.
The global economic outlook is not as grim as it was a few months ago, Das said. Inflation still remains well above the target in major economies. The situation remains fluid and uncertain, Das said.
Indian economy remains resilient, RBI Governor Shaktikanta Das said adding that the real GDP growth is estimated at 7% in 2023-23.