RBI Repo rate hike: Top 10 points that you should know

RBI Repo rate hike: The latest hike from the RBI may be bigger but definetly not the last. With Governor Das keeping the door open for further hikes in the September meeting with a cautious outlook.

Here are the top highlights from the MPC (Monetary Policy Committee) decision:

1. Third repo rate hike by the RBI, rate now at 5.4%

2. Repo rate is now back to pre-pandemic levels, highest since August 2019

3. RBI Policy stance is retained at Withdrawal of Accommodation

4. Expect credit to get more 'expensive', retail lending rates to rise again

5. Banks also expected to hike fixed deposit rates in the near term

6. The governor referred to inflation 25 times in the press statement

7. Inflation outlook: Consumer price inflation has eased from its surge in April but remains uncomfortably high

8. High inflation could destabilise inflation expectations and harm growth in the medium as per the RBI

9. Real GDP growth projection for FY23 retained at 7.2%

10. The next meeting of the Monetary Policy Committee meeting is scheduled to be held the next month itself from September 28-30, 2022