RBI Policy December 2022 Updates: The decision of the Reserve Bank of India (RBI) Governor Shaktikanta Das headed six-member Monetary Policy Committee (MPC) will be announced on Wednesday. The central bank is widely seen raising its key policy rate as inflation continues to stay above its tolerance band.
RBI had slashed the repo rate in March, 2020 with an aim to cushion the impact of covid-induced lockdown, and maintained status-quo in the benchmark interest rate for almost two years before increasing it on May 4, 2022.
India’s retail inflation fell to a three-month low of 6.77% in October, down from 7.41% in September. However, remained above the RBI’s tolerance band for the 10th consecutive row
Rate hike on the cards
The central bank is widely expected to increase the repo rate again for the fifth time in a row by up to 35 basis points as inflation continues to stay above its tolerance band
RBI MPC Meet
The six-member Monetary Policy Committee headed by the RBI Governor Shaktikanta Das started deliberations on the bi-monthly policy review on Monday