Following are the highlights of Reserve Bank of India's monetary policy announced on September30,2022.
Photograph: Vivek Prakash/Reuters
- Benchmark interest rate hiked by 50 basis points to 3-year high at 5.90 per cent.
- Economic growth projection for FY23 cut to 7% from 7.2% estimated in August.
- GDP expected to grow at 6.3% in September quarter, 4.6% each in December and March quarters.
- Inflation projection retained at 6.7% for ongoing fiscal year (FY23).
- Inflation to remain above upper tolerance limit of 6% till December.
- Average crude oil price for Indian basket expected at $100 per barrel.
- RBIto remain focused on withdrawal of accommodative monetary policy stance to check prices.
- RBI says rupee movement orderly against US dollar; depreciated only 7.4% this year till September 28.
- RBI does not have a fixed exchange rate for rupee; intervenes in market to curb excessive volatility.
- Forex reserve down at $537.5 billion as of September 23 this year.
- The central bank confident of financing external sector deficit.
- World in midst of third major shock from aggressive monetary tightening by central banks, Indian economy resilient.
- Merchandise exports affected due to external factors, private consumption picking up.
- Recent correction in global crude oil prices if sustained may provide relief from inflation.
- Bank credit has grown at accelerated pace of 16.2%.
- Next meeting of the Monetary Policy Committee on December 5-7.
