- The Monetary Policy Committee (MPC) at its meeting on February 8, 2023, based on its assessment of the current and evolving macroeconomic situation, decided to increase the policy repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points to 6.50% with immediate effect.
- Similarly, the standing deposit facility (SDF) rate was adjusted to 6.25% and the marginal standing facility (MSF) rate and the bank rate to 6.75%.
- The Gross Domestic Product (GDP) growth forecast for the current financial year 2022-23 has been increased by RBI from 6.8% to 7%.
- In the next financial year 2023-24, the growth rate in gross domestic product (GDP) has been estimated to be 6.4%.
- Inflation for 2022-23 estimated at 6.5%, for Q4 inflation estimated at 5.7%, CPI inflation for 2023-24 estimated at 5.3%.
What is Repo Rate?
Repo rate is the interest rate at which commercial banks borrow money from the central bank to meet their immediate needs. An increase in this means that borrowing from banks and financial institutions will be costlier and the monthly installment (EMI) of existing loans will increase.