Live now
December 07, 2022 / 10:15 AM IST

RBI Monetary Policy LIVE: RBI MPC hikes repo rate by 35 bps, RBI's FY23 GDP projection at 6.8%

Reserve Bank of India MPC LIVE: RBI Governor Shaktikanta Das said the MPC voted 4-2 to remain focused on withdrawal of accommodation so that inflation remains within the target going forward while supporting growth.

Reserve Bank of India Monetary Policy Committee LIVE: RBI Governor Shaktikanta Das will be announcing the bi-monthly monetary policy today, on December 7, at 10 am on the conclusion of the three-day of MPC meet. The Reserve Bank's rate-setting panel started brainstorming for the next round of monetary policy on December 5 amid expectations of a moderate interest rate hike of 25-35 basis points (bps) as inflation has started showing signs of easing and economic growth tapering. The

central bank has hiked key benchmark lending rate by 50 bps thrice since June over and above an off-cycle 40 bps increase in repo in May. The current policy repo rate is 5.9 percent, after the RBI on September 30 hiked repo rate by 50 bps, to "check inflation". This was the third consecutive 50 bps rate hike following similar jumps in May, June, August this year.

Also Read | What will be the RBI MPC decision today?

Expectations

Soumya Kanti Ghosh, Group Chief Economic Adviser of the State Bank of India (SBI) in a research report released on December 5 said the bank expects the RBI to “hike rates in smaller magnitude in December policy attuned to emerging market central banks and the overall rate setting tone. A 35-bps repo rate hike looks imminent. We believe at 6.25 percent, it could be the terminal rate for now".

Several other experts too expect the rate hike to be in the range of 25-35 bps.

Follow our Market LIVE blog here

Economic Indicators

Consumer price index (CPI) based retail inflation, which the RBI mainly factors in while arriving at its monetary policy, is showing signs of moderation but still remains above the central bank's upper tolerance level of 6 percent since January this year.

The inflation dropped to 6.77 percent in October from 7.41 percent in the preceding month, mainly due to easing prices in the food basket, though it remained above Reserve Bank's comfort level for the 10th month in a row.

The GDP growth in the second quarter of the fiscal slowed to 6.3 percent as against a growth of 13.5 percent in the preceding three months.

Stay tuned for the latest news and developments on the RBI MPC! We also bring you the latest updates and analysis from experts, industry voices and financial institutions.