RBI policy more dovish than expected; Repo rate unchanged at 4 per cent
NEW DELHI, FEB 10 : RBI keept benchmark lending rate unchanged at 4 per cent to nurture the economic recovery even amidst rising prices, which the RBI expects to moderate, going forward . The policy stance was kept unchanged also at ‘accommodative’ .
Repo was unchanged at 4 per cent and reverse repo at 3.35 per cent. Real GDP growth has been forecast at 7.8 per cent for FY23 versus The Economic Survey ‘s 8-8.5 per cent. Retail price inflation as measured by CPI for FY22 has been pegged at 5.3 per cent with Q4 rise at 5.7 per cent.
Consumer Price Index for FY 23 is estimated to be at 4.5 per cent with Q1 accounting for 4.9 per cent, 5 per cent for Q2, 4 per cent for Q3 and 4.2 per cent for the last quarter.
Analysts had widely forecast hike in reverse repo by 25 bps and nobody had pencilled in a lower inflation forecast.
The 6.54 per cent bond yield was down by 5 bps at 6.75% with bond markets rejoicing.
-The New Indian Express
