RBI monetary policy 2023 highlights :
RBI Governor Shaktikanta Das briefed the media on Wednesday morning 08th Feb 2023 regarding the first monetary policy of 2023.
Before that one should know:->
What is monetary policy? What is the Repo rate? What is the Reverse Repo rate?
Repo rate update
RBI has increased the repo rate by 20bps to 6.5. According to Mr. Shaktikanta Das, MPC projects GDP is going to grow at 6.4% in the year 2023-2024 so the real GDP growth for the coming year is projected at 6.4%.
Reverse repo rate update
The Reverse Repo rate was left unchanged at 3.35%.
Inflation update
The inflation is going to be above 4% this year and will remain around 5.6% in the fourth quarter of 2023-2024.
New Initiative taken:-
A very good move has been taken regarding the passengers who arrive in India can use UPI for payments. They are going to start this by providing facilities to those traveling here for the September G20 summit and related pre-events.
————————-Impact—————————-
1. EMI on vehicles, homes, and personal loans will rise.
2. The landing rates of banks are expected to go up as the cost of funds is going to increase further.
Current rates
RBI website–https://www.rbi.org.in/
Important members of RBI
| Governor | Shri Shaktikanta Das |
| Deputy Governor | Shri Mahesh Kumar Jain |
| Deputy Governor | Dr. M.D Patra |
| Deputy Governor | Shri M. Rajeshwar Rao |
| Deputy Governor | Shri T. Rabi Shankar |
What is monetary policy?
Monetary policy is the policy adopted by the nation’s central bank to control interest rates, inflation, and supply of money which can ensure sustainable growth.
Type of monetary policy
- Contractionary
2. Expansionary
What is the Repo rate?
The repo rate is the rate of interest that is charged by the central bank of a country to commercial banks when they borrow money from the central bank by selling their security. The current repo rate is 6.25%.
What is the Reverse Repo rate?
It is the reverse of the Repo rate. It is the interest charged by the commercial bank to the RBI for storing the access cash reserves. This is used by the RBI to control the supply/flow of money in the market. The current repo rate is 3.35%.
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