New Delhi. The Reserve Bank of India (RBI) on Friday did not make any change in policy interest rates during the first monetary policy review of FY 2023. Giving information in the press conference, RBI Governor Shaktikanta Das said that the repo rate will remain at 4 percent and the reverse repo rate at 3.35 percent. This is the 11th consecutive time that RBI’s MPC has not made any change in interest rates. In addition, the growth-oriented accommodative stance was also retained.
Announcing the results of the Monetary Policy Committee (MPC) meeting, Reserve Bank Governor Shaktikanta Das said that the central bank has changed its slack stance to keep inflation under control while maintaining economic growth. The Reserve Bank last changed the repo rates on May 22, 2020.
The RBI governor has said that inflation may rise to 5.7 percent in the current financial year. Earlier it was estimated to be at the level of 4.5 percent. While a good rabi crop yield should support rural demand, an increase in connectivity services should support urban demand. Global crude oil prices remain elevated. The anticipated benefits of weakening the Omicron wave have been neutralized by heightened geopolitical tensions. He said that the Indian economy is slowly recovering from the slowdown caused by the pandemic.