The Reserve Bank of India has raised its repo rate of the policy in 50 basis point increments to 5.4 percent, Governor
Shaktikanta Das said. The repo rate has now risen back to pre-pandemic levels and is the highest rate since 2019
In simpler terms, repo rate is the rate of interest paid to the Reserve Bank of India when commercial banks take loans
from them through the sale of its securities back to the central bank. Since May the central bank has increased
Real GDP growth forecast for 2022-23 is set at 7.2 percent, with Q1 averaging 16.2 percent," the governor announced.
It's the third repo rate rise within a span of months by India's central bank. "Indian economy has been grappling with
Das However, he added that the financial sector of the country is well-capitalised, and that the country's reserves
of forex provide insurance against global spillovers'. "IMF has revised downwards economic growth projection
It was reported that the RBI governor also noted that prices for oil in the food industry are likely to continue to fall.