CNBC TV18
LIVE TV

Home

Latest News
Featured

Live TV

Market Live
Minis
Podcasts

CNBC-TV18 Specials

Photos
CNBC-TV18 Binge
Storyboard

Sections

Terms and Conditions

homeeconomy NewsRBI Policy Highlights: Status quo on key rates, higher inflation projection, cut in growth estimates and more

RBI Policy Highlights: Status quo on key rates, higher inflation projection, cut in growth estimates and more

Stating RBI’s agenda for this year, Das said that the central bank, after three years, has prioritised inflation control over growth taking note of inflation risks amid current international instability due to Ukraine-Russia war.

Profile image

By CNBCTV18.com Apr 8, 2022 3:45:57 PM IST (Updated)

Listen to the Article(6 Minutes)
The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged in its first bi-monthly policy meeting of FY23, Governor Shaktikanta Das said on Friday. This is the 11th time in a row that the central bank has maintained a status quo on the key policy rate.

Share Market Live

View All
View All

With no change this time as well, the repo rate currently stands at 4 percent. The reverse repo rate has been maintained at 3.35 percent.
Stating RBI’s agenda for this year, Das said that the central bank, after three years, has prioritised inflation control over growth taking note of inflation risks amid current international instability due to Ukraine-Russia war.
Also Read:
10-year bond yield hits 7% as RBI announces monetary policy
Key Highlights:
  • The MPC, unanimously, voted to keep the repo rate unchanged at 4 percent and keep the stance accommodative. “MPC decided to remain accommodative while focusing on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth”
  • Growth seen lower whereas inflation higher than projected.
    • Growth Outlook
    • The real GDP growth forecast for FY 2023 lowered to 7.2 percent from the earlier 7.8 percent.
      • GDP Forecast  
      • Q1 seen at 16.2 percent vs the earlier 17.2 percent
      • Q2 seen at 6.2 percent vs the earlier 7 percent
      • Q3 seen at 4.1 percent vs the earlier 4.3 percent
      • Q4 seen at 4.0 percent vs the earlier 4.5 percent
        • Inflation Outlook 
        • Assumptions: Normal monsoon in 2022 and average price of crude oil USD 100 per barrel.
        • CPI projected at 5.7 percent for FY23 vs the earlier 4.5 percent
        • Q1 CPI seen at 6.3 percent vs the earlier 4.9 percent
        • Q2 CPI seen at 5.8 percent vs the earlier 5 percent
        • Q3 CPI seen at 5.4 percent vs the earlier 4 percent
        • Q4 CPI seen at 5.1 percent vs the earlier 4.2 percent
          • Liquidity  
          • Width of the LAF corridor to be restored to the pre-pandemic configuration of 50 bps.
          • There will be standing facilities at both ends of the LAF corridor.
          • Access to SDF and MSF will be at the discretion of banks, unlike repo/reverse repo, OMO and CRR.
          • SDF rate will be 25 bps below the policy rate, at 3.75 percent.
          • MSF rate will continue to be 25 bps above the policy repo rate.
          • Opening time for financial markets to be restored to the pre-pandemic timing of 9:00 am w.e.f April 18, 2022.
            • Additional Measures 
            • Rationalisation of risk weights for individual housing loans to be extended till March 31, 2023.
            • Present limit under HTM category to be enhanced to 23 percent from 22 percent of NDTL till March 31, 2023.
            • HTM limits to be restored from 23 percent to 19.5 percent in a phased manner starting from quarter ending June 30, 2023.
            • Discussion paper on Climate Risk and Sustainable Finance to be published shortly for feedback.
            • Setting up of a committee to examine & review current state of customer service in RBI Regulated Entities proposed.
            • Card-less cash withdrawal facility proposed to be made available across all banks and ATM networks using UPI.
              • Also Read: RBI Monetary Policy: Here's the full text of RBI Governor Shaktikanta Das' speech
              First Published: Apr 8, 2022 2:33 PM IST
              Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

              Tags

              GDP growthinflationRBIRBI Monetary Policyrepo rateReserve Bank of Indiareverse repo rateShaktikanta Das

              Lok Sabha elections 2024: BJP's bid for breakthrough in Kerala is an uphill battle, say experts

              Apr 23, 2024 9:53 PM

              2024 Lok Sabha Elections | PM's Rajasthan speech — has it anything to do with the post-poll mood of the first phase

              Apr 23, 2024 3:45 PM

              It's KGF 2024 and here's a look at the key characters in Karnataka

              Apr 23, 2024 3:17 PM

              JP Morgan: Nifty may test 25,000 if BJP wins in 2024 Lok Sabha elections

              Apr 23, 2024 2:23 PM
              View More

              Most Read

              Share Market Live

              View All
              Top GainersTop Losers
              CurrencyCommodities
              CurrencyPriceChange%Change