Key Points from RBI Policy dated
5th August 2022
Repo Rate increased by 50 bps to 5.4%
This is the 3rd consecutive rate hike
Totally 140 bps rate hike has happened since May 2022
Forecasted GDP Growth Forecast for 2022 – 23 remains unchanged at 7.2%
Forecasted Inflation for 2022 – 23 remains unchanged at 6.7%
The Monetary Policy Committee (MPC) continues to remain focused on withdrawal of accommodative stance to target inflation.
RBI on Rupee
In Fiscal Year 2022 – 23 the Rupee has depreciated by 4.7% against the USD.
This makes the Rupee one of the least depreciated currency against the USD.
FII Selling & Forex
In Fiscal Year 2022 – 23 till date USD 13.3 billion portfolio outflow has taken place and despite this India’s forex reserves are 4th largest globally.
Global economic environment has deteriorated due to monetary policy tightening and the war in Europe.
Global Economic Assessment
In India Urban demand is rising while rural demand is catching up
Overall liquidity in the system remains in surplus.
Indian Economic Assessment
The next meeting of the rate setting committee is scheduled for Sept 28-30 2022.
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