Chennai: Announcing the monetary policy, RBI Governor Shaktikanta Das said the Indian economy has large forex reserves and that it stands ready and resolute to defend the economy.
This is the 11th time in a row that the Monetary Policy Committee (MPC) headed by Das has maintained status quo and left benchmark lending rate unchanged at 4 per cent.
RBI had last revised its policy repo rate or the short-term lending rate on May 22, 2020 in an off-policy cycle to perk up demand by cutting the interest rate to a historic low.
Now, two years later as we were emerging out of the pandemic situation, the global economy has seen tectonic shifts beginning 24th February with the commencement of the war in Europe, followed by sanctions and escalating geopolitical tensions
While the pandemic quickly morphed from a health crisis to one of life & livelihood, conflict in Europe has the potential to derail the global economy
Caught in the cross-currents of multiple headwinds, our approach needs to be cautious but proactive in mitigating the adverse impact on India's growth, inflation and financial conditions.
Expected benefits from ebbing of Omicron wave offset by escalation in geopolitical tensions.
RBI will engage in gradual, multi-year withdrawal of Rs 8.5 lakh crore excess liquidity in system.
The Central Bank will continue to adopt nuanced, nimble approach to liquidity management while ensuring adequate liquidity in system.
Robust rabi crop should support rural demand; pickup in contact-intensive services to help boost urban demand.
Sharp pump prices may push inflation; edible oil prices to remain at elevated level in near future.
War could impede economic recovery; RBI cuts growth projection to 7.2 per cent for FY23.
RBI to maintain orderly financial condition in market and will take steps to contain impact of global spillovers.