Sunday, August 14, 2022
News

RBI Governor says, 50 bps rate hike is the new normal across the world

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

Mumbai (Maharashtra) | August 5, 2022 2:57:59 PM IST
The Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said 50 basis points or 0.50 per cent hike in policy rates has become a new normal for the central banks across the world.

Das was reacting on the RBI Monetary Policy Committee (MPC) decision to hike the policy repo rate by 0.50 per cent.

"If you look all around, 50 basis points has become the new normal and large number of central banks are now hiking by 75 to 100 basis points," Das said while explaining the rationale behind 50 basis points hike in policy rates by the RBI.

RBI Governor said the other central banks have been far more aggressive than the RBI in hiking policy rates.

"There is a tendency that 75 to 100 bps will takeover 50 basis points. But in RBI, we take a very calibrated and measured view. We factor in the impact of the rate action on the aspect of growth and on our consumer urban and rural demand. Based on that we have taken a balanced call. Based on the prevailing and expected inflation-growth dynamics," Das said.

The Monetary Policy Committee that met during 3-5 August unanimously decided to increase the policy repo rate by 50 basis points to 5.4 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, as per the Monetary Policy Statement, 2022-23 Resolution of the Monetary Policy Committee (MPC).

"We, in the RBI, reiterate our commitment to maintain price and financial stability to place our economy on a sustainable path of growth. Our actions have helped the economy to tide over a series of shocks in the last two and half years. We are seized of our role at this critical juncture and will persevere in our efforts to ensure a safe and soft landing," RBI Governor said after the conclusion of the MPC meeting. (ANI)

 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE BUSINESS NEWS
Former co-CEO of Deutsche Bank, Anshu Ja...
'Harnessing four engines of growth, Indi...
CCI approves merger of HDFC Bank, HDFC L...
Allen Career Institute announces the lau...
KSB Limited bags order worth Rs 500 cror...
With guaranteed discounts and gifts wort...
More...
 
INDIA WORLD ASIA
Delhi Police unearths key link of drug n...
Pakistan's warship PNS Taimur to partici...
I-Day: Delhi dips in patriotic ardour, t...
In Lakshadweep, chicken, meat regularly ...
Ashwini Vaishnaw 'flags in' RPF bike ral...
India at 75: Our foreign policy has move...
More...    
 
 Top Stories
Union Minister Jitendra Singh launc... 
Baloch group targets Pakistani army... 
How Raju Srivastava climbed ladder ... 
Study finds new approach control pa... 
Har Ghar Tiranga: National flag hoi... 
Salman Rushdie taken off ventilator... 
Tamil Nadu: BJP Madurai district pr... 
President Droupadi Murmu to address...