The central bank of the 5th largest economy of the world has decided to increase the policy repo rate by 35 basis points to 6.25%. Consequently, the standing deposit facility (SDF) rate stands adjusted to 6.00 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.50 per cent.
Delivering the bimonthly Monetary Policy Statement of the RBI through the RBI’s YouTube channel today, the Governor Dr. Shaktikanta Das informed that the Monetary Policy Committee has also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth.
Explaining the rationale behind the monetary policy stance, the RBI Governor observed that the MPC was of the view that further calibrated monetary policy action is warranted to keep inflation expectations anchored, break core inflation persistence, and contain second-round effects. He asserted that these actions will strengthen the medium-term growth prospects of the Indian economy.
