RBI hikes repo rate by 50 bps as inflationary pressures intensify; retains GDP forecast

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Jun 08, 2022

The Reserve Bank of India (RBI) Governor on Wednesday announced that the Monetary Policy Committee voted unanimously to hike the benchmark interest rate by 50 bps with immediate effect. The RBI also left its FY23 GDP growth forecast unchanged at 7.2%.

The policy repo rate now stands at 4.90%, still below its pre-pandemic level. Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) rates have been raised by 50 bps. SDF rate stands adjusted to 4.65%, MSF rate adjusted to 5.15%.

On the inflation front, the RBI revised its projection to 6.7% from the earlier estimate of 5.7% as the protracted nature of the Russia-Ukraine war puts pressure on commodity prices globally.

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