Ajit Karn
RBI monetary policy for 2023: Shaktikanta Das, governor of the Reserve Bank of India (RBI), will deliver the first Monetary Policy statement of the year. Das is announcing the decisions made by the Monetary Policy Committee (MPC) of the central bank, which met for three days beginning on February 6.
In December 2022, following the year’s final MPC meeting, the RBI increased the repo rate by 0.35 percentage points to its current level of 6.25 percent. This fifth consecutive increase in interest rates brought the repo rate to its highest level since March 2019. In contrast, the reverse repo rate remained unchanged at 3.5%.
The RBI governor begins his speech by announcing the first Monetary Policy statement of 2023.
Repo rate increased in prior meeting.
At its previous meeting in December 2022, the MPC increased the repo rate by 0.35 percentage points but left the reverse repo rate unchanged. Read
The Real GDP growth for 2023-24 is projected at 6.4% with Q1 at 7.8%, Q2 at 6.2%, Q3 at 6% & Q4 at 5.8% :RBI Governor Shaktikanta Das pic.twitter.com/xDu5YgiDMv
— ANI (@ANI) February 8, 2023
What are monetary policy, the reverse repo rate, and the repo rate?
Here is all the information you need concerning monetary policy, repo rate, and reverse repo rate.
This is the interest rate charged by the RBI when commercial banks sell their securities to the central bank in order to borrow money. Essentially, it is the interest charged by the Reserve Bank of India (RBI) when banks borrow from it, similar to how commercial banks charge interest on auto loans and home loans. Current repo rate is 6.25 percent.
The Reserve Bank of India’s Monetary Policy Committee meeting, which began on Monday, will announce its decision on Wednesday, amid predictions that the repo rate will increase by 25 basis points (bps).
What is financial policy?
The monetary policy of the Reserve Bank of India is a collection of financial instruments and measures designed to safeguard and promote economic growth. The RBI conducts monetary policy with the “primary goal of maintaining price stability while keeping in mind the objective of growth,” as stated on its website.
Monetary policy reviews are one of the central bank’s most effective tools for achieving financial stability and economic growth. Monetary policies govern the overall money supply available to commercial banks and, indirectly, to individuals and businesses.
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What exactly is the repo rate?
This is the interest rate charged by the RBI when commercial banks sell their securities to the central bank in order to borrow money. Essentially, it is the interest charged by the Reserve Bank of India (RBI) when banks borrow from it, similar to how commercial banks charge interest on auto loans and home loans. Current repo rate is 6.25 percent.
