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RBI’s 1st Monetary Policy - 2022-23

Calibrated policy sequencing inflation over growth
08 April 2022
    Local Market Commentary
    Download the full reportPDF, 956.21KB

    RBI’s 1st Monetary Policy - 2022-23

    Key Highlights
    Repo rate unchanged; Introduction of Standing Deposit Facility rate at 3.75 per cent and calibration in policy stance

    • Repo rate unchanged at 4.0 per cent; Reverse Repo at 3.35 per cent and Marginal Standing Facility at 4.25 per cent
    • Stance remains “accommodative” while at same time focusing on “withdrawal of accommodation” to ensure that inflation remains within the target going forward, while supporting growth
    • The standing deposit facility (SDF) rate, which has now been introduced, will now be the floor of the LAF corridor and at 3.75 per cent. The marginal standing facility (MSF) rate and Bank Rate remain unchanged at 4.25 per cent Thus, the width of the LAF corridor is restored to the pre-pandemic configuration of 50 bps
    • Inflation is now projected at 5.7 per cent in 2022-23; real GDP growth for 2022-23 is now projected at 7.2 per cent
    • All members of the MPC voted unanimously to keep rates on hold and also voted unanimously for the policy stance
    • Enhance the present limit under Held to Maturity (HTM) category from 22 percent to 23 per cent of NDTL till March 31, 2023

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