New Delhi: The Reserve Bank of India (RBI) Wednesday raised the repo rate by 25 basis points to 6.5 pc. This is the sixth time interest rate has been hiked by the central bank since May last year. The total quantum of hikes since May now stands at 250 basis points.
Announcing the bi-monthly monetary policy, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) by a majority decided to raise the policy repo rate by 25 basis points and keep a 'strong vigil' on inflation outlook. "Policy rate at 6.5 per cent still trails the pre-pandemic level," Das said, adding that core inflation (inflation in manufactured goods) will remain 'sticky'.
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Inflation will moderate in the next fiscal but remain above the 4 per cent level, the Governor said. The RBI is mandated to keep inflation at 4 per cent with a margin of 2 per cent on either side. The RBI projected a growth rate of 6.4 per cent in the next fiscal. The Economic Survey released by the finance ministry this year pegs projection between 6-6.8 percent for 2023-24.
Das said that the retail inflation will average 6.5 per cent in the current fiscal and moderate to 5.3 per cent in 2023-24. The world economy does not look so grim now as inflation coming down, Das said, adding that amid volatile global developments, the Indian economy remains resilient. (With inputs from PTI)
