RBI surges repo rate by 50 bps to 5.4%; 10-year-old bond yields up by 10 bps to 7.25%. Here are all the key points and changes in RBI MPC in August 2022 you need to know.
Committee retains FY23 CPI forecast at 6.7%, flags uncertainty on inflation trajectory
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The Reserve Bank of India will hike its key interest rate on Friday, economists polled by Reuters said, but there was no consensus on the size of the move
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The revised rates for new borrowers range between 7.80 per cent and 8.30 per cent, depending on credit and loan amount
Parliament likely to discuss the matter today; MPC to consider matter at 3-day meet that begins on Wednesday
Ever since the RBI MPC started to hike the repo rate in May, CPI inflation has eased from 7.79 per cent in April to 7.01 per cent in June
Says there is significant slack in the economy, as GDP is far below estimates of pre-Covid trajectory of potential output
The repo rate before the pandemic came was 5.15%
The RBI today raised the repo rate to 4.9 per cent, up from 4.4 per cent. The Central Bank also raised consumer price (CPI) or retail inflation forecast for FY23 to 6.7 per cent from 5.7 per cent.
Expectations are for the RBI to revive open-market operations or resort to Operation Twists, wherein it buys longer bonds and sells shorter-dated notes, to support the market amid record debt supply
Repo rate was left unchanged at 4 per cent and the reverse repo rate at 3.35 per cent
The RBI's dovish stance has also provided comfort to the unnerved bond and equity markets.
FIIs' favorite names and heavyweights like HDFC twins, ICICI Bank, Infosys, Kotak Bank, and Reliance Industries saw sharp cuts
The Reserve Bank is likely to leave the key interest rates unchanged at its fourth bi-monthly policy review, according to HDFC Bank Chief Economist Abheek Barua
An accommodative stance on monetary policy (unchanged since June'19), in the face of an unfavourable growth-inflation trade-off is understandable for now
The RBI's 2021-22 growth forecast is likely to remain unchanged at 9.5 per cent year-on-year