RBI Monetary Policy: Repo rate hike again, shocks with 50 bps hike

RBI Monetary Policy surprised the street with a 50 bps repo rate hike again, shocks with 50 bps hike.

Here are the top highlights -:

• Unanimous decision by MPC to hike repo rate by 50 bps to 4.9%

• Decides to keep policy stance ‘withdrawal of accommodation’

• Raises inflation forecast for the year sharply, FY'23 CPI projected at 6.7% vs 5.7% earlier

• Inflation projection shows prices cooling only in the last quarter of this financial year

• RBI hints at more rate hikes: "We will remain focused on bringing down inflation closer to target and focus on macro stability"

• FY23 GDP retained at 7.2% with growth slowing significantly to 4% in the final quarter of the year

• Increases MSF & Bank Rate By 5.15% From 4.65%