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

Banks hike deposit rates ahead of festive season

August 18, 2022

Business Mint is proud to announce Nationwide HealthCare...

August 16, 2022

Amul, Mother Dairy hike milk prices by Rs...

August 16, 2022

Hacker Accessed Our Network Through a Worker’s Google...

August 15, 2022

Telegram releases a new update every day after...

August 15, 2022

Johnson & Johnson to stop selling and making...

August 13, 2022

Centre clarifies issues on GST on rent for...

August 12, 2022

GST e-invoice must for businesses with Rs 10...

August 3, 2022

Bticoin, Ethereum, Dogecoin, and several other cryptocurrency saw...

August 2, 2022

Swiggy announces permanent work-from-anywhere policy

July 29, 2022

Leave a Comment Cancel Reply

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

Recent Posts

  • Salman Khan’s new hairstyle as he posts a cryptic picture.

    August 19, 2022
  • Gujarat’s seaplane project could be restarted before assembly elections

    August 19, 2022
  • Tendulkar to lead Mumbai Half Marathon

    August 19, 2022
  • Six Concerts by DJ Snake In India In Nov

    August 19, 2022
  • Kat Kristian flaunts sexy body in these pictures

    August 19, 2022
August 2022
M T W T F S S
« Jul    
1234567
891011121314
15161718192021
22232425262728
293031  
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.