Reserve Bank of India Monetary Policy

Reserve Bank of India Monetary Policy 2023

RBI hikes repo rate by 25 basis  points to 6.5%

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) on Wednesday hiked the repo rate by 25 basis points to 6.50 per cent. Wednesday's MPC meeting is the last one for this fiscal. The repo rate is the rate at which the RBI lends to the banks.

RBI Monetary Policy 2023: Inflation has shown signs of moderation & the worst is behind us: RBI Governor Shaktikanta Das

The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth.

The first advance estimates (FAE) released by the National Statistical Office (NSO) on January 6, 2023, placed India’s real gross domestic product (GDP) growth at 7.0 per cent year-on-year (y-o-y) for 2022-23, driven by private consumption and investment. On the supply side, gross value added (GVA) was estimated at 6.7 per cent.

The overall liquidity remains in surplus, with average daily absorption under the LAF increasing to ₹1.6 lakh crore during December-January from an average of ₹1.4 lakh crore in October-November. On a y-o-y basis, money supply (M3) expanded by 9.8 per cent as on January 27, 2023, while non-food bank credit rose by 16.7 per cent. India’s foreign exchange reserves were placed at US$ 576.8 billion as on January 27, 2023.

Resilience of banks much stronger to be affected by an individual incident: Shaktikanta Das on Adani issue."The RBI has made its own assesments. The large exposure guidelines prescribed by the RBI are fully complied with by all the banks. The strength, the size and the resilience of the Indian banking system is now much larger and much stronger to be affected by an individual incident or a case like this,"

RBI MPC Meet 2023: Monetary Policy Committee did not discuss Adani issue, reveals Governor Shaktikanta Das.