The Live Ahmedabad
  • Home
  • Ahd City
  • Business
  • Entertainment
  • Education
  • Crime
  • Health
  • Politics
  • Sports
  • Featured

The Live Ahmedabad

  • Home
  • Ahd City
  • Business
  • Entertainment
  • Education
  • Crime
  • Health
  • Politics
  • Sports
  • Featured
Ahmedabad Business

RBI MPC increase hike in repo rate by 50 basis point

by TLAteam August 5, 2022August 5, 2022
written by TLAteam August 5, 2022August 5, 2022
RBI MPC increase hike in repo rate by 50 basis point

The Reserve Bank of India’s Monetary Policy Committee (MPC) on Friday announced a 50 basis point hike in the repo rate to 5.40 per cent.

The Standing Deposit Facility (SDF) rate is now at 5.15 per cent, while the Marginal Standing Facility (MSF) Rate stands at 5.65 per cent. The SDF represents the lower band of the interest rate corridor and the MSF the higher.

With the latest hike from the six-member Monetary Policy Committee (MPC), the repo rate now stands at 5.4 percent. Repo is the rate at which the central bank lends short-term funds to banks. Changes in this rate typically gets transmitted to the broader banking system. The MPC has cumulatively hiked repo rate by 140 bps in the current rate hike cycle.

On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (August 5, 2022) decided to:

•           Increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 5.40 per cent with immediate effect.

•           Consequently, the standing deposit facility (SDF) rate stands adjusted to 5.15 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 5.65 per cent.

•           The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth.

•           These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.

“With inflation expected to remain above the upper threshold in Q2 and Q3, the MPC stressed that sustained high inflation could destabilise inflation expectations and harm growth in the medium term,” said Reserve Bank of India (RBI) Governor Shaktikanta Das in his statement.

“The inflation trajectory is now poised at a decisive point. While there are incipient signs of a confluence of factors that could lead to further softening of domestic inflationary pressures, there remain significant uncertainties,” Das said.

“Financial markets have remained uneasy despite intermittent corrections. We have witnessed large portfolio outflows to the tune of US$ 13.3 billion during the current financial year so far (up to August 3). Nevertheless, with strong and resilient fundamentals, India is expected to be amongst the fastest growing economies during 2022-23 according to the IMF, with signs of inflation moderating over the course of the year. Export of goods and services together with remittances are expected to keep the current account deficit within sustainable limits”, the statement reads.

AhmedabadAhmedabad cityAhmedabad newsGujaratGujarat governmentGujarat newslatest news
0 comment
previous post
Government lists step-by-step guide to fold, store Tricolour.
next post
Lock Upp fame Anjali Arora enjoys her time in Maldives, ups her fashion game

You may also like

After Mother Dairy Amul Announces Rs 2 Per...

May 1, 2025

Gold Prices in Ahmedabad Hit One Lakh, Experts...

April 23, 2025

Sensex & Nifty Hit New Peaks, But Global...

January 12, 2024

Ahmedabad set for R‘ERA’ in real estate market;...

December 30, 2023

Ahmedabad traffic police Collects Rs 4.34cr Fine For...

December 10, 2023

WordCamp Ahmedabad 2023: A Celebration of Growth, Learning,...

December 4, 2023

Wakefit Store in Ahmedabad offers free accommodation on...

November 18, 2023

Investment MoUs of Rs 20,000 Cr Signed with...

November 2, 2023

GI Outsourcing Announces its Business Expansion Plans in...

October 31, 2023

QSR Startup Ajay`s Opens First COCO Outlet In...

October 23, 2023

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

Recent Posts

  • Pakistan targets 20 Indian cities in fresh drone attack, air defence in action

    May 9, 2025
  • Trump Urges “Quick De-Escalation” Of India-Pak Conflict: White House

    May 9, 2025
  • Blackout Imposed In Villages Bordering Santalpur Taluka In Gujarat’s Patan

    May 9, 2025
  • Pakistani Drone Hits Residential Area in Punjab; 3 Injured

    May 9, 2025
  • “Intermittent Sounds Of Blasts Can Be Heard”: Omar Abdullah Issues Urgent Appeal Amid Escalating Tensions

    May 9, 2025
August 2022
MTWTFSS
1234567
891011121314
15161718192021
22232425262728
293031 
« Jul Sep »
Footer Logo
  • Home
  • Ahd City
  • Business
  • Entertainment
  • Education
  • Crime
  • Health
  • Politics
  • Sports
  • Featured
  • Privacy Policy
  • Disclaimer
  • Cookie Policy
  • Terms of use
  • Advertise with Us
  • Work With Us
  • Contact Us

© 2021 - The Live Ahmedabad. All Rights Reserved.