RBI MPC Meeting 2023: RBI has increased the interest rates by 0.25 percent. After which the policy rate has increased to 6.50 percent. After this increase, there has been an increase of 2.50 percent in the financial year 2023.
RBI Monetary Policy: reserve Bank of India (RBI) Has increased the repo rate once again in the MPC meeting mainly to control inflation. RBI has increased the interest rates by 0.25 percent. After which the policy rate has increased to 6.50 percent. After this increase, there has been an increase of 2.50 percent in the financial year 2023. If experts are to be believed, then in the coming new financial year, there can be an increase in the policy again. Some experts say that if the US Fed increases the interest rates, the RBI MPC will also increase the interest, otherwise not.
Inflation and GDP are expected to remain so
Along with this, the central bank has increased the gross estimate of GDP growth for the current financial year 2022-23 from 6.8 percent to 7 percent. At the same time, the GDP (Gross Domestic Product) growth rate has been estimated to be 6.4 percent in the next financial year. RBI has estimated retail inflation to be 6.5 percent in the current financial year and 5.3 percent in the next financial year.
EMI will increase
Repo rate is the interest rate at which commercial banks borrow from the central bank to meet their immediate needs. An increase in this means that the loan taken from banks and financial institutions will be costlier and the monthly installment (EMI) of the existing loan will increase.
RBI Governor’s statement
Giving information about the decision taken in the three-day meeting of the Monetary Policy Committee (MPC), which began on Monday, RBI Governor Shaktikanta Das said that considering the current economic situation, the MPC has decided to increase the policy rate repo by 0.25 percent to 6.50 percent. Have done. He said that out of six members of the Monetary Policy Committee, four voted in favor of increasing the repo rate. However, this pace of increase in the repo rate is less than the increase in the previous five times and the market was expecting it.
how much has increased
RBI has increased the repo rate by 2.50 percent in total six times since May this year mainly to control inflation. Earlier, the repo rate was increased by 0.40 per cent in May and 0.50-0.50 per cent each in June, August and September and 0.35 per cent in December. While deciding on the policy rate, the central bank primarily takes into account retail inflation.
