RBI MPC held on 8th February 2023:-
This is 6th straight consecutive increase,
RBI started hiking rate from 4th May 2022 when it raised Repo Rate by 40 bps to 4.40% from 4.00%
1. MPC hikes Repo rate by 25 bps. Now Repo stands @ 6.50%. SDF @ 6.25% & MSF @ 6.75%.
2. Policy stance remains focused on the withdrawal of accommodation.
3. The global economic outlook does not look as grim now as it did a few months ago.
4. Growth prospects in major economies have improved, while inflation is on a descent though still remains well-above target in major economies.
5. FY23 inflation projected at 6.5%. Inflation expected to average 5.6% in Jan-March FY23.
6. Inflation seen at 5.3% for FY24. The annual retail inflation rate eased to 5.72% in December from 5.88% in the previous month, falling below the RBI's upper tolerance band of 2%-6% for a second straight month.
7. Core inflation remains elevated and that further calibrated policy action was warranted.
8. The stickiness of core or underlying inflation is a matter of concern. Need to see a decisive moderation in inflation.
9. Real GDP growth FY24 seen 6.4%; Apr-Mar real GDP growth seen 7.8% Jul-Sep real GDP growth seen 6.2.
10. The next meeting of the MPC is scheduled during April 3, 5 and 6, 2023.
In this financial year till now RBI has hiked Repo Rate 250 bps.
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