RBI increases repo rate by 0.5 percent to 5.4 percent, back to pre-pandemic level, says RBI Governor

Reserve bank of India today increased the Repo Rate by 50 basis points to 5.40 percent. RBI Governor Shaktikant Das announced the bi-monthly Monetary Policy today. While announcing the policy, Shaktikant Das said that the Monetary Policy Committee which held a three-day MPC Meeting on Wednesday unanimously decided to increase the Repo Rate. Accordingly, Standing Deposit Facility Rate was adjusted to 5.15 percent from 4.65 percent. Marginal Standing Facility Rate and Bank Rate revised to 5.65 percent from 5.15 percent.

The RBI Governor said that the Repo Rate is now back to pre-pandemic level highest since August 2019. He said that the real GDP growth projection for 2022-23 is retained at 7.2 percent with Q1- 16.2 percent, Q2-  6.2 percent, Q3 -4.1 percent, and Q4- 4.0 percent with risks broadly balanced. The real GDP growth for the first quarter of the ensuing fiscal year is projected at 6.7 percent.