Reserve Bank of India Today, under the bi-monthly monetary policy review, announced the first monetary policy for the financial year 2022-23, in which the GDP growth forecast has been reduced along with raising the inflation forecast. At the same time, without making any change in the policy rates, the repo rate has been kept at 4 percent and the reverse repo rate at 3.35 percent. Here you can understand 7 important things related to it sequentially.
1. However, the RBI has lowered its GDP growth forecast for the current financial year (2022-23) while raising the inflation forecast. Announcing the results of the Monetary Policy Committee (MPC) meeting, Reserve Bank Governor Shaktikanta Das said that the central bank will change its soft stance to keep inflation under control and maintain economic growth. Governor Das said that the central bank is not bound by any rules. “The Reserve Bank will use all available means to ‘protect’ the economy,” he said.
2. The Reserve Bank last changed the repo rate on May 22, 2020. This time also the policy rates remain unchanged at the previous level, which means that there will be no change in the monthly installment of bank loans.
3. MPC has reduced the economic growth rate forecast for the current financial year to 7.2 percent. In the monetary review meeting of February, the MPC had projected the economic growth rate to be 7.8 percent.
4. With this, the central bank has predicted inflation to be at 5.7 percent in the current financial year. Earlier it was estimated to be at 4.5 percent.
5. He said that the Indian economy is facing new and huge challenges. He said that there is sufficient foreign exchange reserves in the Indian economy and the Reserve Bank will work to keep it safe from all challenges.
6. However, Shaktikanta Das said that the anticipated benefits of weakening the Omicron wave have been neutralized by the heightened geopolitical tensions.
7. RBI Governor Shaktikanta Das said that the Reserve Bank will review customer services. He also announced to extend the facility of cardless (cardless) withdrawal from ATMs using UPI to all banks.