As anticipated, the MPC set the ball rolling on the gradual exit from its post-pandemic easy monetary policy by tweaking the policy stance to ?Accommodative while focussing on withdrawal of accommodation?.
Key highlights
The Monetary Policy Committee (MPC) made the following announcements after today’s meeting:
- The MPC left unchanged the key policy rate — Repo rate at 4% and the Reverse repo rate at 3.35%.
- However, the RBI introduced the Standing Deposit Facility (SDF) – an additional tool for absorbing liquidity – at an interest rate of 3.75%.
- The central bank retained its accommodative policy while focusing on withdrawal of accommodation in wake of elevated inflation levels
- The policy panel slashed the GDP growth to 7.2% and hiked the inflation forecast at 5.7% for the fiscal 2022-23.
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