25 Basis Points Hike In The Next Monetary Policy, RBI

What’s the news?

The RBI is going for a meeting for 3days in April’s first week, and in the discussion,  it is like to be said that there may be a hike in the retail inflation rate by 25 basis points. Retail inflation is already above the normal of 6, and if this hike takes place, it will strike strong in the backbone of every family class.

1^st  Bi-monthly Monetary Policy 2022-2023 By RBI?

RBI issued its first bi-monthly monetary policy in 2022-23 under the governor Shaktikanta Das. And it laid down some big announcements as well. Seeing the performance of the first bi-monthly monetary policy, RBI will announce its second one for the financial year 2023-2024. Let's see the highlights of RBI’s first bi-monthly monetary policy:

• The policy repo rate shall remain steady at 4%, with no adjustments anticipated for the marginal standing facility rate nor the bank rate, which shall remain at 4.25%.
• The monetary policy aims to maintain a supportive stance, with a primary focus on the gradual removal of accommodation measures to effectively manage inflation and keep it within the set target range.
• The growth projection of the GDP for FY'23 has decreased from 7.8 percent to 7.2 percent. This projection assumes that the Indian basket crude oil price would remain at USD 100 per barrel during the fiscal year.
• The inflation projection for FY'23 has been revised upwards from 4.5 percent to 5.7 percent.
• Heightened geopolitical tensions are poised to negatively impact the economic outlook.
• The strong Rabi output is expected to bolster the revival of demand in rural areas and facilitate an upswing in contact-intensive services.

<figcaption class="pl-caption>Credit: Google

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