The Reserve Bank of India (RBI) on Friday announced an increase in the policy repo rate by 50 basis points to 5.9%. The Monetary Policy Committee (MPC) of the RBI hiked the repo rate with immediate effect.
"Standing Deposit Facility(SDF) rate stands adjusted to 5.65% &MSF(Marginal Standing Facility) and bank rate to 6.15%. Monetary Policy Committee (MPC) decided to remain focused on withdrawal of accommodation to ensure inflation remains within target going forward, supporting growth," Das said.
"Inflation projection is retained at 6.7% for current year, with Q2 at 7.1%, Q3 at 6.5% & Q4 at 5.8% with risks evenly balanced. CPI inflation is projected to further reduce to 5% in Q1 of FY 2023-24. Monetary policy must remain alert and nimble," he added.