RBI'S INTEREST RATE HIKES AND INFLATION CONTROL: ANALYZING THE REPO RATE MOVEMENTS FROM 2022 TO 2023
DOI:
https://doi.org/10.29121/shodhkosh.v4.i2ECVPAMIAP.2023.2453Keywords:
RBI, Repo Rate, Inflation Control, Monetary Policy, Borrowing Costs, Economic Growth, Central Bank Policy, Inflation ForecastAbstract [English]
Unlike the usual, this April 2023, The Reserve Bank of India kept its repo rate at 6.5 %, this was right after making six hikes at a stretch, resisting market projections for a 25-basis point rate hike. The effect of the recent financial turbulence was closely monitored by the body.
It was stated by policymakers that they were still focused on accommodation withdrawal, thus more tightening was possible.
Rate increases were put on hold only for this conference. From May 2022, the RBI increased rates by a total of 250 basis points, bringing borrowing costs up to levels seen in January 2019. The board also reduced its inflation forecast to 5.2% from 5.3% and increased its growth estimate to 6.5% from 6.4% for the fiscal year that begins in April. This article examines the Reserve Bank of India's recent interest rate increases in the perspective of reducing inflation.
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Copyright (c) 2023 Dr. Arpit Trivedi, Shivendra V. S. Bhadauria, Suraj Sul, Trishal Singh, Vraj Joshi
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