RBI Monetary Policy 2023 Live Updates: RBI Hikes Repo Rates by 25 Basis Points to 6.50%, Loan EMIs to go Up

RBI Monetary Policy 2023 Live Updates: RBI's MPC has decided 4:2 vote to remain focused on withdrawal of accommodative policy.

New Delhi: In a move that will raise borrowing costs for corporates and individuals even further, the RBI Monetary Policy Committee led by Governor Shaktikanta Das hiked Repo Rate by 25 basis points to 6.5 percent on Wednesday.

Repo is the rate at which Reserve Bank of India lends funds to commercial banks when needed. It is a tool that the central bank uses to control inflation. This is the third hike since the beginning of the current financial year, taking the rate is back to pre-pandemic levels in order to tame the inflationary pressure.

The six-member Monetary Policy Committee headed by Reserve Bank of India Governor Shaktikanta Das started deliberations on the bi-monthly policy review on Monday. 

Governor Shaktikanta Das said that 4 out of 6 members of the Monetary Policy Committee voted in favour of the rate hike.

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08 February 2023

16:26 IST

RBI Monetary Policy 2023: RBI Rate Hike in Consonance With Expectations

Dinesh Khara, Chairman, SBI said, "“RBI decision to hike the rate was in consonance with the expectations. Continuing strong job data from Fed has made monetary policy making a delicate balancing act for emerging economies central banks. Beyond the rate hike, there are a bouquet of policies that attend the micro structure of the market. The proposal to address the issue of penal charges on services will bring a rule based regulation. The initiatives on climate risk will improve compliance, capital budgeting and financial disclosures for banks. Providing further impetus to TReDS platform in terms of further augmentation of activities and allowing lending and borrowing government securities will add depth and aid price discoveries across markets.”

15:07 IST

RBI Monetary Policy 2023: No Sweeping Impact on Real Estate Sector 

“RBI’s decision to hike the repo rate by 25 basis points may be one of the last in the ongoing rate hike cycle, as we have witnessed inflation moving toward a comfortable zone. We do not expect any sweeping impact on the real estate sector or housing sales for now, given the demand has remained upbeat and the recent budget announcements will spur the growth momentum," Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE said.