India

RBI Hikes Lending Rate To Tame Inflation, Retains GDP Forecast

By
OB Bureau

Mumbai: To contain the soaring inflation, the Reserve Bank of India (RBI) on Wednesday raised the benchmark interest rate by 50 bps basis points while keeping FY23 GDP growth forecast unchanged at 7.2%.

The hike, which was voted unanimously by Monetary Policy Committee in its June bi-monthly meeting, took the policy repo rate to a two-year high of 4.9%. The rate hike comes on the back of a 40 bps increase effected by RBI at an unscheduled meeting on May 4.

Repo rate is the rate at which the central bank lends money to commercial banks in the event of any shortfall of funds. It is used by monetary authorities to control inflation.

The Standing Deposit Facility has been adjusted to 4.65 per cent and the Marginal Standing Facility (MSF) to 5.15%.

The RBI has also revised its projection to 6.7% from the earlier estimate of 5.7% as the protracted nature of the Russia-Ukraine war puts pressure on commodity prices globally. “Inflation is likely to remain above 6% in the first three quarters of the current fiscal. Our steps will be calibrated, focussed on bringing down inflation to the target level,” said RBI Governor Shaktikanta Das.

The Gross Domestic Product growth has been estimated at 8.7% in 2021-22, he added.

Notably, the Work Bank on Tuesday slashed the GDP growth forecast for India to 7.5%, citing rising inflation, supply chain disruptions and geopolitical tensions.

Also Read: World Bank Further Lowers India’s Economic Growth Forecast For FY23

OB Bureau

Recent Posts

Odisha STA Seizes Actress Rani Priyadarshini’s Scooter For Filming Reel Without Helmet

Bhubaneswar: The State Transport Authority (STA) of Odisha has seized the scooter of jatra actress…

November 25, 2024

Three Killed After Google Map Leads Their Vehicle To Unfinished Bridge

Bareilly: Blind trust on technology can be detrimental too. That’s exactly what happened to three…

November 25, 2024

Soon After Parliament’s Winter Session Begins, Rajya Sabha Adjourned Amid Opposition’s Ruckus Over Adani Issue

New Delhi: The Winter Session of Parliament commenced on Monday (Nov 25). But both houses…

November 25, 2024

Bangladeshi Girl ‘Trafficking’ Case In Odisha: Couple Arrested For Forcing Her Into Prostitution

Cuttack: After rescuing a minor Bangladeshi girl, Madhupatna Police in Odisha’s Cuttack city have arrested…

November 25, 2024

2nd Maharashtra Tigress Zeenat Released Into Core Area Of Similipal In Odisha

Baripada: Ten days after being put in a soft enclosure inside Similipal Tiger Reserve (STR)…

November 25, 2024

Odisha GDP Suspends Jonk Police Station IIC For Dereliction Of Duty

Nuapada: Inspector In-Charge (IIC) of Jonk police station in Odisha’s Nuapada district, Gurudev Karmi, has…

November 25, 2024

IPL Auction: KKR Break Bank For Venkatesh On Lucrative Day For Indian Players; Check Top Buys

Mumbai: The first day of the IPL mega player auction at Jeddah threw up several…

November 24, 2024

Odisha Govt Hands Over Case Of Attack On Dharmasala MLA To Crime Branch

Bhubaneswar: The Odisha government has handed over the investigation into the attack on Dhramasala MLA…

November 24, 2024