RBI leaves lending rates unchanged, raises inflation forecast

Business

To spur economic growth, the RBI has maintained its previous lending rates while raising the inflation forecast to 5.7%, says RBI Governor Shakktanta Das.

To spur economic growth, the RBI has maintained its previous lending rates while raising the inflation forecast to 5.7%, says RBI Governor Shakktanta Das.

At its first meeting for the current fiscal year 2022-23 on Friday, the Reserve Bank of India’s Monetary Policy Committee (MPC) decided to keep lending rates unchanged and its “accommodative” monetary policy stance in the face of rising inflation due to the Russia-Ukraine conflict .

The benchmark lending rate or repo rate was held at 4%, unchanged from the last meeting in February this year. The base rate or reverse repo rate was also left unchanged at 3.35%.

To speed up the recovery from the pandemic, the RBI has decided to maintain the status quo for the 11th consecutive year.

Meanwhile, the MPC also voted to raise its inflation forecast for the current fiscal year to 5.7%, up from 4.5% last fiscal year.

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