The RBI hikes Repo Rate by 35 bps to 6.25%; Projects FY23 GDP at 6.8%

On 7th December 2022, the Reserve Bank of India’s (RBI’s) Monetary Policy Committee issued a Press Release where the RBI raised the Repo Rate by 35 basis points (bps) to 6.25% while also maintaining their stance on “Withdrawal of Accommodation” deemed effective immediately as announced by the Governor of RBI, Shaktikanta Das.

Since August 2018, the RBI policy rate is currently at its highest. This is the fifth hike rate by the RBI for the particular financial year. Previously, the RBI has raised the repo rate by 40 bps through an off-cycle meeting held in Many and 50 bps in June, August and September.