The Monetary Policy Committee (MPC) of the central bank increased the repo rate, often known as the key lending rate, by 50 basis points (bps), bringing it to a three-year high of 5.9 percent, RBI Governor Shaktikanta Das announced on Friday. The nation’s real GDP is projected to grow by 7% in the upcoming fiscal year.
The RBI governor stated, “The world economy is at the eye of the storm, but India has survived shocks during the last two years.” The rate of inflation is currently 7% and is predicted to stay there through the second half of the year.
He stated, “The predicted inflation rate is 6.7%.” He emphasized that the GDP increased by 13.5% year-over-year in the first quarter and that the MPC must continue to be vigilant and flexible in light of the current circumstances.
Although it was less than anticipated, the real GDP growth in the first quarter of this year was still 13.5 percent, maybe the greatest among the major world countries, he emphasized.
