Central Govt blocks more than 200 offshore gambling, predatory loan platforms
The six-member Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das projected the real GDP growth at 6.4 per cent for 2023-24.
IN a move that will lead to further increase in lending and deposit rates, the Reserve Bank of India (RBI) raised the repo rate by 25 basis points (bps) to 6.5 per cent in its fight against inflation.
Das said while inflation is expected to moderate in 2023-24, it is likely to rule above the 4 per cent target. “The outlook is clouded by continuing uncertainties from geopolitical tensions, global financial market volatility, rising non-oil commodity prices and volatile crude oil prices. At the same time, economic activity in India is expected to hold up well. The rate hikes since May 2022 are still working their way through the system… On balance, the MPC was of the view that further calibrated monetary policy action is warranted to keep inflation expectations anchored, break the persistence of core inflation and thereby strengthen the medium-term growth prospects. Accordingly, the MPC decided to raise the policy repo rate by 25 basis points to 6.50 per cent,” he said.
Das said the MPC will continue to maintain strong vigil on the evolving inflation outlook so as to ensure that it remains within the tolerance band and progressively aligns with the target.
Commenting on the policy, State Bank of India’s Chairman Dinesh Khara said the RBI policy statement reaffirmed the commitment to bring inflation down further and ensure financial stability in markets. “In principle, RBI from its vantage position has harmonised key measures, ensuring the economy remains cushioned to the maximum extent from the impact of inflation in everyday lives,” Khara said.
Das said the current account deficit (CAD) is expected to moderate in the second half of the fiscal 2022-23 and remain eminently manageable and within the parameters of viability. In the H1 of the current fiscal, CAD stood at 3.3 per cent of GDP.
