RBI Monetary Policy LIVE: GDP growth forecast for FY23 lowered to 6.8% from 7%, RBI MPC hikes repo rate by 35 bps to 6.25%

Catch the post Monetary Policy Press Conference by RBI Governor Shaktikanta Das at 12 noon here

RBI Post MPC Press Conference LIVE Updates: Governor Shaktikanta Das on inflation

"Headline inflation is moderating. In fact, the worst of inflation is behind us. But there is no room for complacency and we have to be watchful and act if necessary."

Indranil Pan, Chief Economist, YES Bank on RBI Policy

- RBI reduced the pace of increase in the policy repo rate to 35 basis points but provided no indication of having reached the end of the hiking cycle. Although the RBI trimmed FY23 GDP growth by 20 bps to 6.8 percent, the central bank viewed India’s growth to be strong when compared to the rest-of-the-world.

- On the other hand, inflation continues to remain a worry for the RBI. The governor did not mince words to indicate that the critical risks is for core inflation remaining sticky and elevated, even as food inflation were to moderate.

- To sum up, momentum of domestic retail inflation remains strong and the RBI therefore should remain guarded. Our own model of Headline CPI inflation indicate an above 6 percent level till February, in line with the RBI’s anticipated trajectory. We think that with the pace of increase in the repo rate having been lowered, the risk is for the rate hiking cycle being elongated.

RBI MPC LIVE Updates: Nikhil Gupta, Chief Economist, MOFSL group.

- In an expected move, policy interest rates are raised by 35bps today, taking repo rate to 6.25% and SDF to 6%. Further, the Governor made it clear that the fight against inflation will continue, while India's growth remains more resilient. It is, thus, clear that there will be at least one more rate hike of 25bp in CY23.

- The RBI reduced its GDP growth forecasts to 6.8% for FY23 (from 7%) and to 7.1% for 1QFY24 (from 7.2%) and put at 5.9% in 2QFY24.

- At the same time, inflation is projected to remain >4% for the next 12 months. It is kept unchanged at 6.7%/5% for FY23/1QFY24 and put at 5.4% in 2QFY24.

RBI MPC LIVE Updates: Naveen Kulkarni , Chief Investment Officer, Axis Securities PMS

- As expected, the Monetary Policy Committee increased the policy rate by 35bps with a majority decision of five out of six members voting for it, and more importantly, re-iterated its intention of withdrawing accommodative policies with a majority decision of four members out of six voting for it. 

- The RBI has reduced India's growth forecast for FY23 from 7% to 6.8%, but India remains one of the fastest-growing major economies globally. The RBI governor exhibited confidence in India's growth trajectory but mentioned that it is crucial to be vigilant to the secondary effects of high global commodities, especially energy and food prices. 

- We believe the MPC decisions today are on expected lines and would not have any major impact on Indian markets, purely based on decisions announced today.

RBI MPC LIVE Updates: CPI in numbers

RBI MPC LIVE Updates

RBI MPC LIVE Updates: RBI Governor Shaktikanta Das

- "While being watchful of the impact of our earlier monetary policy actions, we will keep Arjuna’s eye on the evolving inflation dynamics and be ready to act as may be necessary. Our actions will be nimble and in the best interest of the economy. The aspect of growth will obviously be kept in mind."