- Reserve Bank of India (RBI) hiked the repo rate by 25 basis points (bps) on February 8, 2023. This is the sixth time that RBI has hiked the interest rate since May 2022, taking the total quantum of the hike to 250 bps mostly driven by external factors, such as the Russia-Ukraine war.
- The monetary policy committee (MPC) meet consists of three RBI officials and three external members appointed by the central government.
- This has increased the SDF to 6.25% and the MSF to 6.75%. The RBI estimated India’s FY24 economic growth rate at 6.4 percent, lower than the Economic Survey’s estimate of 6.5 percent.
- The central bank increased the key benchmark interest rate by 35 basis points (bps) in the December 2022 monetary policy review.
- India’s retail inflation dropped to 5.72% in December 2022, but still above RBI’s desired level. Government data suggests that the latest figures show a decline and further moderation in retail inflation.
Repo Rate Hiked By 25 BPS for the sixth time
