RBI MPC meet: 10 highlights from Shaktikanta Das’ speech
- RBI unanimously hiked the repo rate by 50 basis points to 4.90%
- India's foreign exchange reserves were $601.1 billion as of June 3
- Credit cards may now be connected to UPI, beginning with RuPay credit cards
The Reserve Bank of India’s Monetary Policy Committee, led by RBI Governor Shaktikanta Das, unanimously hiked the repo rate by 50 basis points to 4.90%. The latest policy rate rise follows the central bank’s announcement of a 40 basis point increase in the repo rate in off-cycle policy action in May.
Also Read | RBI MPC meet: Co-operative banks’ housing loan limits hiked by 100%
The following are the top ten highlights of RBI Governor Shaktikanta Das’ speech:
1. The rates on the Standing Deposit Facility and the Marginal Standing Facility have been hiked by 50 basis points. The rate on the Standing Deposit Facility is now 4.65%, while the rate on the Marginal Standing Facility is now 5.15%.
2. The MPC agreed unanimously to keep the focus on the withdrawal of accommodation in order to keep inflation within target in the future.
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3. GDP growth is expected to remain at 7.2% in FY23. For April-June, GDP growth is expected to be 16.2%, 6.2% from July to September, 4.1% from October to December and 4.0% from January to March.
4. CPI inflation projection for FY23 increased to 6.7% from 5.7%, according to RBI Governor Shaktikanta Das. The RBI’s inflation projection is based on a regular monsoon and a crude basket price of $105 per barrel.
Also Read | RBI MPC meet: Real GDP growth projections for FY 2022-2023 retained at 7.2%
5. The RBI will provide enough liquidity in the banking system while normalising pandemic-related steps.
6. The RBI is keeping a tight watch on the government securities market. The central bank will take the appropriate measures as needed.
7. India’s foreign exchange reserves were $601.1 billion as of June 3, 2022.
8. Individual house loan limits set by urban and rural cooperative banks are being revised more than 100% higher to reflect the surge in housing values over the previous decade.
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9. To simplify transactions such as subscriptions, the cap on recurring e-payments has been increased from Rs 5,000 to Rs 15,000.
10. Credit cards may now be connected to UPI, beginning with RuPay credit cards.
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