ANI
05 Aug 2022, 14:57 GMT+10
Mumbai (Maharashtra) [India], August 5 (ANI): The Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said 50 basis points or 0.50 per cent hike in policy rates has become a new normal for the central banks across the world.
Das was reacting on the RBI Monetary Policy Committee (MPC) decision to hike the policy repo rate by 0.50 per cent.
"If you look all around, 50 basis points has become the new normal and large number of central banks are now hiking by 75 to 100 basis points," Das said while explaining the rationale behind 50 basis points hike in policy rates by the RBI.
RBI Governor said the other central banks have been far more aggressive than the RBI in hiking policy rates.
"There is a tendency that 75 to 100 bps will takeover 50 basis points. But in RBI, we take a very calibrated and measured view. We factor in the impact of the rate action on the aspect of growth and on our consumer urban and rural demand. Based on that we have taken a balanced call. Based on the prevailing and expected inflation-growth dynamics," Das said.
The Monetary Policy Committee that met during 3-5 August unanimously decided to increase the policy repo rate by 50 basis points to 5.4 per cent, with immediate effect.
Consequently, the standing deposit facility (SDF) rate stands adjusted to 5.15 per cent; and the marginal standing facility (MSF) rate and the Bank Rate to 5.65 per cent. The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth.
These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of /- 2 per cent, while supporting growth, as per the Monetary Policy Statement, 2022-23 Resolution of the Monetary Policy Committee (MPC).
"We, in the RBI, reiterate our commitment to maintain price and financial stability to place our economy on a sustainable path of growth. Our actions have helped the economy to tide over a series of shocks in the last two and half years. We are seized of our role at this critical juncture and will persevere in our efforts to ensure a safe and soft landing," RBI Governor said after the conclusion of the MPC meeting. (ANI)Get a daily dose of Japan Herald news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Japan Herald.
More InformationWASHINGTON, D.C.: Commerce Secretary Howard Lutnick said the Trump administration is asking companies and foreign governments to help...
WASHINGTON, D.C.: The Trump administration is seeking a delay in the legal battle between U.S. Steel and Nippon Steel over their blocked...
SEATTLE/WASHINGTON D.C.: U.S. Transportation Secretary Sean Duffy said last week that the Federal Aviation Administration (FAA) is...
Local farmers work for the China-Gambia agricultural technology cooperation project in Central River Division, Gambia, on March 13,...
Kyoto [Japan], March 22 (ANI): The Japan Culinary Art Award was recently held in Kyoto to honour the world's top chefs in Japanese...
A worker assembles wheelchairs at the workshop of Alu Rehab (Xiamen) Co., Ltd. in Xiamen, east China's Fujian Province, Feb. 26, 2025....
PARIS, France: Air France is making a bold bet on luxury travel with the launch of an upgraded first-class suite, aiming to attract...
WASHINGTON, D.C.: U.S. home construction and manufacturing activity surged in February, but rising costs from tariffs and economic...
NEW YORK, New York - Uncertainty continues to plague investors on Wall Street with Friday's trading being volatile and weak. The major...
WASHINGTON, D.C.: U.S. factories ramped up production in February, with a sharp rebound in motor vehicle output helping to drive manufacturing...
Elon Musk's Teslas' are in the running to take over the transport of Israel's government officials. Musk's company, Tesla Inc., has...
WASHINGTON, D.C.: The Trump administration is seeking a delay in the legal battle between U.S. Steel and Nippon Steel over their blocked...