RBI hikes repo rate by 50bps

The Reserve Bank of India (RBI) Governor on Wednesday announced that the Monetary Policy Committee voted consistently to climb the benchmark interest rate by 50 bps with immediate effect. The RBI additionally left its FY23 GDP growth forecast unchanged at 7.2%.

The policy repo rate currently remains at 4.90%, still beneath its pre-pandemic level. Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) rates have been raised by 50 bps. SDF rate stands adjusted in accordance with 4.65%, MSF rate adjusted to 5.15%.

On the expansion front, the RBI amended its projection to 6.7% from the prior gauge of 5.7% as the extended idea of the Russia-Ukraine war comes down on commodity prices universally.

The RBI likewise proposed to allow the connecting of Mastercards to the UPI stage, Governor Das said on Wednesday as he declared a rate climb. Regardless, the Rupay Visas will be linked to the UPI platform, which will give extra comfort to the clients and improve the scope of digital payments, Das said.

In order to deepen credit flow to the housing sector, Das said that the cooperative banks can now loan something else for home loans. This will guarantee better credit flow in the residential housing sector.