The Reserve Bank of India (RBI) has hiked the repo rate by 25 bps to 6.50% from 6.25% earlier. With this, SDF rate adjusts to 6.25% from 6% and MSF Rate adjusts to 6.75% from 6.50%. The Monetary Policy Committee (MPC) of RBI has maintained policy stance at withdrawal of accommodation to ensure that inflation remains within the target going forward.
On the growth front, the Central Bank has estimated FY23 GDP growth at 7%. Also, it has projected 6.4% growth in real GDP for FY24. RBI Governor Shaktikanta Das said inflation to stay above 4%. He noted that further monetary policy action is warranted in India.
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