NEWS

Key RBI Credit Policy Highlights

The RBI announced its bi-monthly monetary policy today. Here are the highlights, including on inflation and GDP forecast. 


. RBI MPC maintains status quo on rates unanimously at 4%

. RBI MPC votes unanimously for Accommodative stance, going to be less accommodative  ahead

. RBI MPC committee ups reverse repo rate by 40bps at 3.75% to ensure liquidity

. RBI to restore liquidity adjustment facility (LAF) corridor to 50bps, as it was in pre-Covid

. MSF Rate and Bank Rate remain unchanged at 4.25%

. Real GDP for FY23 revised at 7.2% from 7.8% earlier

. Inflation revised upwards at 5.7% for FY23 from 4.5%

. A newly introduced Standing Deposit Facility will mark the floor

. The policy corridor restored to the pre-pandemic level

. Guidance leaves the door open for a change in stance at the June review
. Implications for markets: Bond investors continue to count on RBI’s support

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