RBI maintains status quo, keeps key rates unchanged
New Delhi, February 10
In its first monetary policy of the current calendar year, the RBI on Thursday held its key lending rates steady at record low levels for the tenth straight time. The move led to the rupee sliding by 10 paise against the US dollar as the market was expecting a hike in reverse repo rate to withdraw excess liquidity.
The RBI has projected GDP growth of 7.8% in FY23 as against the Economic Survey’s 8-8.5% forecast and IMF’s projection of 9%. The conservative estimate is due to the uncertainties on account of pandemic and elevated global commodity prices, explained RBI Governor Shaktikanta Das.
CAD to be below 2% OF gdp IN FY22
- Repo rate unchanged for 10th time in a row at 4%
- Reverse repo rate also unchanged at 3.35%
- GDP growth projected at 7.8% for FY23, against 9.2% in FY22
- Retail inflation pegged at 5.3% for current fiscal, 4.5% in FY23
- Current account deficit (CAD) to be below 2% of GDP in FY22
- On-tap liquidity facility of Rs50,000 crore for healthcare extended till June 30
- e-RUPI digital voucher cap raised from Rs10,000 to Rs1 lakh and multiple-use permitted
The RBI anticipated a lower inflation rate of 4.5% for FY23 as against 5.3% expected in the current year, assuming that the monsoon will be normal.
The RBI’s Monetary Policy Committee also decided to keep the repo rate unchanged at 4% and the reverse repo rate at 3.35%.
“Overall, taking into consideration the outlook for inflation and growth in particular, the comfort provided by improving inflation outlook, the uncertainties related to Omicron and global spillovers, the MPC was of the view that continued policy support is warranted for a durable and broad-based recovery,” he said.
