InvestorQ : What were the key announcements in the RBI monetary policy on 08th June?
Riya Dwivedi made post

What were the key announcements in the RBI monetary policy on 08th June?

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shrinidhi Rajan answered.
4 weeks ago
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Here are the highlights of the monetary policy announcement by the RBI.

· Repo rate was hiked by 50 basis points to 4.90%. RBI had already hiked repo rates by 40 bps to 4.40% in May MPC meet. The target pre-COVID level of rates is 5.15%.

· Here is how some of the pegged rates moved. The standing deposit facility (in lieu of reverse repo rate) increased from 4.15% to 4.65%. At the same time the MSF / Bank Rate increased by 50 bps from 4.65% to 5.15%. Both are pegged at 25 bps spread to the repo rate.

· CRR stays at 4.5% since the RBI felt that VRRRs were good enough to absorb liquidity in the system.

· Inflation outlook for FY23 was raised by 100 bps from 5.7% to 6.7%. RBI estimates of GDP growth are static at 7.2%.

· All six members of the MPC voted unanimously to hike repo rates by 50 bps to 4.90%. There was also total consensus among the members of the MPC to stay focused on withdrawal of accommodation.

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