RBI Monetary Policy Highlights: Repo rates remain unchanged at 4%, GDP growth projected at 7.2% for FY 23

RBI April Monetary Policy Highlights: Reserve Bank of India’s Monetary Policy Committee has voted to keep the benchmark repo and reverse repo rates unchanged for the straight 11th time. The Repo rate remains unchanged at 4 percent. 

Created On: Apr 8, 2022 11:23 IST
RBI Monetary Policy 2022
RBI Monetary Policy 2022

RBI April Monetary Policy: The Reserve Bank of India’s Monetary Policy Committee on April 8, 2022, voted to keep the benchmark repo and reverse repo rates unchanged for the straight 11th time in a row. The Governor of the Reserve Bank of India Shakitkanta Das stated in his Monetary Policy Statement that the Committee has voted unanimously to leave the repo rates unchanged at 4 percent. The Monetary Policy Committee has also voted unanimously to keep the stance accommodative.

The repo rate is the rate of interest at which the Reserve Bank of India lends short-term funds to the banks. On the other hand, the reverse repo rate will remain unchanged at 3.35 percent. The Reverse Repo rate is the interest rate at which the RBI borrows from banks. 

The RBI Governor further informed that the Marginal Standing Facility (MSF) rate and the Bank rate have remained unchanged at 4.25 percent.  

RBI Governor after the Monetary Policy meeting announced that the Reserve Bank of India will restore the liquidity adjustment facility (LAF) to 50 bps, as it was in the time of pre-COVID. MSF and Bank rates also remain unchanged at 4.25 per cent. 

The Governor said that the floor of the corridor will now be provided by the newly instituted standing deposit facility, which will be placed 25 basis points below the repo rate, i.e. at 3,75 per cent.

RBI projects GDP growth at 7.2%, inflation at 5.7%

Das while speaking on the Gross Domestic Product (GDP) growth rate in 2022-23 said that the real GDP growth is now projected at 7.2% with Quarter 1 2022-23 at 16.2%, Q2 at 6.2%, Q3 at 4.1%, and Q4 at  4.0%.

While speaking on the inflation forecast, the Governor added that inflation is now projected at 5.7% in 2022-23, with Q1 at 6.3%, Q2 at 5.8%, Q3 at 5.4% while Q4 at 5.1 per cent.

During the briefing on RBI Monetary Policy 2022, the Governor of the Reserve Bank of India stated that the world is confronted with new and humongous challenges such as shortage in key commodities, fear of de-globalization, and fractures in international financial structure. 

Das further added that the global economy is witnessing tectonic shifts with the commencement of the war in Europe, followed by extended sanctions and escalating geopolitical tensions. 

While the Coronavirus pandemic morphed into a health crisis, conflict in Europe has the potential to derail the global economy. He added that India's approach needs to be cautious and proactive. 

The latest RBI Monetary Policy is the 11th consecutive policy review when the Reserve Bank of India has decided to maintain a status quo on the key policy rates. RBI has not also changed repo and the reverse repo rates since May 2020.

Shaktikanta Das has said that the Monetary Policy Committee has also decided to maintain an accommodative policy stance in the recent announcements. 

Take Weekly Tests on app for exam prep and compete with others. Download Current Affairs and GK app

एग्जाम की तैयारी के लिए ऐप पर वीकली टेस्ट लें और दूसरों के साथ प्रतिस्पर्धा करें। डाउनलोड करें करेंट अफेयर्स ऐप

AndroidIOS
Read the latest Current Affairs updates and download the Monthly Current Affairs PDF for UPSC, SSC, Banking and all Govt & State level Competitive exams here.

Related Stories

Comment (1)

Post Comment

1 + 3 =
Post
Disclaimer: Comments will be moderated by Jagranjosh editorial team. Comments that are abusive, personal, incendiary or irrelevant will not be published. Please use a genuine email ID and provide your name, to avoid rejection.
  • Narendra kunchalaApr 9, 2022
    I want that job
    Reply

Monthly Current Affairs PDF

  • Current Affairs PDF April 2022
  • Current Affairs PDF March 2022
  • Current Affairs PDF February 2022
  • Current Affairs PDF January 2022
  • Current Affairs PDF December 2021
  • Current Affairs PDF November 2021
View all

Monthly Current Affairs Quiz PDF

  • Current Affairs Quiz PDF April 2022
  • Current Affairs Quiz PDF March 2022
  • Current Affairs Quiz PDF February 2022
  • Current Affairs Quiz PDF January 2022
  • Current Affairs Quiz PDF December 2021
  • Current Affairs Quiz PDF November 2021
View all