New Delhi: The Reserve Bank of India increased the repo rate by 25 bps to 6.50 per cent, announced RBI Governor Shaktikanta Das today.
Das said that unprecedented events of the last three years have put to test monetary policy across the world. “Emerging market economies are facing sharp tradeoffs between supporting economic activity and controlling inflation while preserving policy credibility,” he said. With this, the RBI has raised the repo rate by 250 basis points since May 2022.
The central bank softened December policy and increased the repo rate by 35 basis points to 6.25 per cent.
RBI has projected 6.4 per cent growth in real GDP for FY24.
Das further said that RBI’s MPC has decided to remain focused on withdrawal of accommodative policy.
Das added that there is an urgent need to reinforce global co-operation, on the global ‘fault-lines’ emerging over last several years.
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