MPC revises inflation upwards at 5.7% for FY23

Mumbai, Apr 08 The three-day monetary policy committee (MPC) meeting, which concluded here today, has revised its inflation outlook upwards at 5.7 per cent for FY23 from 4.5 per cent a year ago. Real GDP for FY23 revised at 7.2 per cent from 7.8 per cent earlier.

Also, the six-member panel, headed by the RBI governor Shaktikanta Das, has unanimously voted going ahead. However, it has given an indication for a less accommodative stance accommodative stance on key policy rates for now.

RBI will restore liquidity adjustment facility (LAF) corridor to 50 bps, as it was pre-Covid, whereas MSF Rate and Bank Rate remain unchanged at 4.25 per cent.

Concerns were raised over protracted supply disruptions have rattled commodity, financial markets

The RBI governor Shaktikanta Das said that MPC will adopt nimble footed approach to adjust liquidity while maintaining accommodative stance.

Talking to Bizz Buzz, Shishir Baijal, Chairman & Managing Director at Knight Frank India said, "Despite the disruptions from geo- political challenges as well as inflationary pressures, the RBI recognises the need to maintain economic growth momentum."

We welcome the RBI's continued accommodative stance and status quo on REPO rate. For the real estate sector, low interest rates for a long period of time has served as a key catalyst for the resurgence of demand. The status quo on REPO rates will help maintain the current demand levels as interest rate for both homebuyers and developers are likely to be maintained by financial institutions, he added.