This is the first-rate hike since August 2018 and the first instance of the MPC making an unscheduled increase in the repo rate (the rate at which banks borrow from the RBI).
The Reserve Bank of India (RBI) retained its key lending rate during the first monetary policy review of FY23.
It has also slashed its growth forecast for the present fiscal to 7.2 per cent from 7.8 per cent in February.
MPC has decided to keep benchmark repurchase (repo) rate at 4 per cent, Das said while announcing the bi-monthly monetary policy review.
MPC has been given the mandate to maintain annual inflation at 4 per cent until March 31, 2026, with an upper tolerance of 6 per cent and a lower tolerance of 2 per cent.
RBI had last revised its policy repo rate or the short-term lending rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low.
Mumbai: The Indian rupee plunged to a record low of 70.52 during the noon-trade session on Wednesday. It had retreated sharply on Monday to hit a closing low of 70.16 against the US dollar, plunging by 25 paise despite a huge rally in equities amid easing worries over near-term monetary policy tightening by the US […]
Mumbai: In its penultimate monetary policy review of the fiscal, the Reserve Bank of India (RBI) on Wednesday maintained status quo on its key lending rates citing concerns over the rising trajectory of inflation. The central bank said its repurchase rate, or the short-term lending rate for commercial banks, has been maintained at 6 per […]
Washington: The US Federal Reserve has kept its interest rate unchanged but announced that it would start unwinding its $4.5 trillion balance sheet from October, a further step to end the loose monetary policy. “Information received since the Federal Open Market Committee met in July indicates that the labor market has continued to strengthen and […]
New Delhi: The Reserve Bank is likely to maintain status-quo on interest rate in the upcoming monetary policy review on December 5 despite moderation in economic growth and easing inflation, opined experts. After back-to-back hikes since June, the RBI had kept interest rates unchanged in the previous policy review in October, surprising markets that had […]
Mumbai: Further addressing the liquidity concerns in the country, the Reserve Bank of India on Tuesday said it will buy government securities worth Rs 25,000 crore next month through two auctions of Rs 12,500 crore each. Open market operations (OMOs) are conducted by the RBI by sale or purchase of government securities (g-secs) to regulate money […]
Mumbai: Public sector lender State Bank of India (SBI) on Wednesday became the first Indian bank to link its saving and loan interest rates to the Reserve Bank of India (RBI)’s repo rate. The move assumes significance as the effective interest rate from May 1 on savings deposit above Rs 1 lakh will come down […]
New Delhi/Mumbai: Further monetary policy easing is expected as the economy struggles with a demand downturn, liquidity constraint and a high finance cost, sources said on Friday. It is learnt that Reserve Bank of India would stick with its stance and further lower the repo rate, which will in turn reinvigorate consumer sentiment and shore […]
Mumbai: The Reserve Bank on Wednesday cut key interest rate for the fourth consecutive time, as it reduces repo rate by 35 basis points to 5.40 per cent to boost the slowing economy. The six-member monetary policy committee (MPC) also maintained the accommodative stance on the monetary policy. Noting that inflation is currently projected to […]
Mumbai: Domestic currency depreciated 13 paise to fall below the physiological mark of 71 a dollar on Monday. This comes after the Reserve Bank of India sharply lowered its FY20 growth forecast from 6.9 per cent earlier to 6.1 per cent. However, RBI expects 2QFY20 GDP growth at 5.3 per cent and it forecasts sharp […]