RBI raises repo rate by 50 basis points

Mumbai, Sept 30: In the monetary policy announcements, Reserve Bank of India on September 30, 2022, announced an increase in repo rate by 50 basis points to 5.9 per cent.
The announcement was made by the Monetary Policy Committee (MPC) of RBI.
This is the fourth consecutive rate hike after a 40 basis points increase in May and 50 basis points hike each in June and August. In all, RBI has raised benchmark rate by 1.90% since May this year.
The six-member Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das decided in favour of the rate hike.
The RBI said that the monetary policy stance to remain focused on withdrawal of accommodation and it added that the economic activity in India remains stable.
RBI Governor Shaktikanta Das said “GDP growth for FY23 projected at 7%. Inflation projection for FY23 retained at 6.7%.”
Mr. Das said “World in midst of third major shock from aggressive monetary tightening by central banks.”
Mr. Das said “There is nervousness in financial market, global economy eye of new storm.”
The RBI Governor also added, “eecent correction in global crude oil prices if sustained may provide relief to inflation.”
Mr. Das said “Rupee has depreciated in a very orderly manner.” He further added that “RBI does not have any fixed exchange rate in mind.”
The RBI Governor said “Bank credit has grown at accelerated pace of 16.2%.”