In order to control inflation, the RBI increased the Loan Cost. The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) on Wednesday raised the benchmark lending rate by 25 basis points (bps) to 6.5% as the RBI continues to target higher core or underlying inflation which it sees as an outlook for improvement. Sees it as a risk. for the economy.
Noting that rate hikes since May were still working their way through the system, Governor Shaktikanta Das said that The MPC’s view was to keep inflation expectations stable, broke the persistence of core inflation and More calibrated monetary policy action is needed and thus the medium term Strengthening the prospects of development.
The MPC, which cut its CPI inflation forecast for the current fiscal year to 6.5% from 6.7% estimated at its last policy meeting in December and cut its growth estimate for the first quarter of the fiscal year starting April by 70 bps. increased to 7.8%. , also reiterated that it is of housing Will focus on returns. However, two of the panel’s six members voted against the majority decision to raise rates.
How did RBI Governor Shri Shaktikanta Das answer the questions of journalists on Adani Group?
Responding to reporters’ questions on the Adani Group, Mr. Das said that the Indian banking sector is strong and a case will not affect it. “At this point, I would like to say that the Indian banking system, including the NBFC sector, continues to be resilient and strong. Based on our assessment, the large exposure guidelines of the RBI have been fully complied with by all banks. The strength, the size and resilience of the Indian banking system is now much large and much stronger to be affected by an individual incident or a case,” the RBI governor stressed.
“When banks lend money to a company, they do not lend on the basis of the market capitalization of that particular company. They lend on the basis of strength of that company and fundamentals,” he added without naming any company or group.
What did RBI Governor Shri Shaktikanta Das say about the economy?
Speaking on the economy, Mr. Das said: “The Indian economy remains resilient … it has withstood successive global shocks over the last three years”.
The RBI chief said the real policy rate has moved into positive territory and the banking system has come out of the ‘cycle’ of excess liquidity without disruption. He said that the transmission of monetary policy is also gaining momentum.
Mr. Das said the reduction in the size of the rate hike by 25 bps also provided the RBI with elbow room to weigh all incoming data and forecasts and determine the appropriate course of action and policy stance.
