Guwahati: The monetary policy committee of the Reserve Bank of India (RBI) decided to raise the repo rate by 25 basis points to 6.5% on Wednesday. The decision was announced by Governor Shaktikanta Das.
This was the year’s first Monetary Policy Statement. The repo rate was increased to 6.25% in December 2022 by 0.35 percentage points. The 3.35% rate for reverse repo remained unchanged.
The real GDP growth for 2023–2024 is predicted to be 6.4% with Q1 at 7.8%, Q2, 6.2%, Q3, 6%, and Q4 at 5.8%.
The marginal standing facility rate and the bank rate will remain unchanged at 6.75% and 6.25%, respectively. By a vote of 4 out of 6 members, the MPC also resolved to continue concentrating on the withdrawal of accommodation in order to maintain target inflation going forward while promoting growth.
The picture for the world economy is not as bleak as it was a few months ago, according to Das. Major economies continue to have high inflation rates. According to Das, the situation is still unstable and volatile.
According to RBI Governor Shaktikanta Das, the Indian economy is still strong, and in 2023–2023, real GDP growth is anticipated to expand by 7%.
“Looking ahead while inflation is expected to moderate in 2023-24, it is likely to roll above the 4% target. The outlook is clouded by continuing uncertainties from geopolitical tensions, global financial market volatility, rising non-oil commodity prices and volatile crude oil prices,” Das said.