RBI made several announcements in MPC meeting
The Reserve Bank of India will allow passengers arriving in India from G20 countries to transact through UPI at certain airports. Apart from this, in view of the crisis at the global level, the Reserve Bank has estimated the growth rate to be 6.4 percent in the next financial year 2023-24. Not only this, the Reserve Bank has increased the interest rates for the sixth time since May this year.
Big things of the monetary policy meeting of the Reserve Bank of India
Reserve Bank of India (RBI) governor Shaktikanta Das said inflation is projected to be 6.5 per cent in 2022-23, based on the assumption that India’s crude oil purchases will average $95 per barrel. If the monsoon is normal, the inflation rate based on CPI (Consumer Price Index) will also be 5.3 percent in 2023-24.
The Reserve Bank of India (RBI) on Wednesday said the difference in Asian currencies last year and this year is due to global factors. However, the rupee has seen less volatility as compared to other Asian currencies.
The retail inflation rate in the country is estimated to be 5.6 per cent in the fourth quarter. At the same time, the retail inflation rate will remain at 6.5 percent in the current financial year. RBI believes that the inflation rate will decline in the next financial year. It is reported to come down to 5.3 percent next year.
After the meeting, the Reserve Bank said that the growth rate in the financial year 2022-2023 is expected to be up to 7 percent. At the same time, there will be a decline in the growth rate in the financial year 2023-24. The growth rate is estimated to be 6.4 percent in the financial year 2023-24.
The Reserve Bank of India (RBI) has increased the repo rate from 0.25 percent to 6.50. Four out of six members of the monetary policy meeting voted in favor of raising the repo rate.
RBI believes that the current account deficit will come down in the second half of 2022-23. Currently, India’s average current account deficit for the first six months of 2022-23 stands at 3.3% of GDP.
One of the biggest announcements made after the monetary policy meeting was that soon travelers from G20 countries visiting India would also be able to enjoy the UPI facility. However, this facility will be available only at a few airports.
Announcing the monetary policy meeting, RBI Governor Shaktikanta Das said that according to the central bank’s internal survey, companies in the service and infrastructure sectors are positive about the business outlook in India.
Shaktikanta Das said market timings for the government securities market have been restored from pre-pandemic times of 9 am to 5 pm.
A pilot project on QR code based coin vending machines will be started in 12 cities.