RBI Governor Das addresses the nation, increases repo rate by 40 bps

The Reserve Bank of India Governor Shaktikanta Das said made a statement today at 2 pm and the statement comes at a time when inflation has increased and remained over the RBI’s upper tolerance band of 6%.

Shaktikanta Das is currently serving as the 25th governor of the Reserve Bank of India. Earlier he was a member of the Fifteenth Finance Commission and India’s Sherpa to the G20.

The Reserve Bank of India (RBI) Governor Shaktikanta Das said he would make a statement at 2 pm on Wednesday, May 4, 2022 today. The central bank confirmed the same in its tweet today. The statement came at a time when inflation had increased and remained over the RBI’s upper tolerance band of 6%.

Today the RBI governor’s surprise addresses to the nation included key points regarding the performance of the Indian economy. As well as the current economic situation of growing inflation amid the geo-political war. The Governor stated that the ” Indian economy has shown resilience” despite the current situation developing in Europe and Asia. Given the 2022 Russian invasion of Ukraine. He further elaborated that the “Withdrawal of accommodation policy” should help to stabilize inflation.

Governor Das said “Inflation changes widespread” and “RBI shows resolve not to be bound by rule books”. Even though the dynamic response of the Indian economy continues to develop the state despite pushbacks. He warned “April inflation is expected to be elevated”.

He also informed that the Monetary Policy Committee (MPC) decided to hold meeting to assess the economy. And it was unanimously decided that they have chosen to raise the repo rate by 40 bps.

RBI will also withdraw its “Accommodation” stance since inflation pressures are becoming more acute.
The 40 bps hike will be bought in with immediate effect to move policies in desirable output rates.

 

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