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RBI hikes repo rate to keep inflation anchored

Reserve Bank of India (RBI) Governor Shaktikanta Das on Dec. 07, announced the Monetary Policy Committee's decision of hiking repo rate by 35 basis points to 6.25 per cent. The inflation trajectory has largely evolved in line with the outlook given by us in June 2022, Shaktikanta Das said, adding that going forward, food inflation is likely to moderate with the usual winter softening and the likelihood of a bountiful rabi harvest. However, the Governor said pressure points remained in the form of prices of cereals, milk and spices in the near-term. On RBI's inflation target, he said global commodity prices, including crude oil, have undergone some downward correction, but uncertainty continues to surround the near-term outlook in view of the prolonging geo-political hostilities. Talking about India's growth, the Governor said India's real GDP growth for 2022-23 is projected at 6.8 per cent, with the third quarter (Q3) at 4.4 per cent and the fourth quarter (Q4) at 4.2 per cent and added that the risks are evenly balanced. He said, "On a financial year basis (April 2022 to October 2022), the INR has appreciated by 3.2 per cent in real terms, even as several major currencies have depreciated. The story of the INR has been one of India's resilience and stability."

RBI hikes repo rate to keep inflation anchored
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