<p>In a surprise move, Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday hiked the Repo Rate by 40 basis points to 4.40 per cent with immediate effect. </p>.<p>His address came amid soaring commodity prices across sectors. </p>.<p>The decision follows an unscheduled meeting of the Monetary Policy Committee (MPC), with all six members unanimously voting for a rate hike while maintaining the accommodative stance.</p>.<p><strong>Here are the key takeaways from Das's address:</strong></p>.<p>- While the inflation has remained above the targetted 6 per cent since January, RBI Governor Shaktikanta Das said the inflation print in April is also likely to be high. The retail inflation print for March stood at 6.9 per cent.</p>.<p>- Amid economic turmoil due to the ongoing Russia-Ukraine war, Das said, "The Indian economy has shown resilience amid tectonic shift in global economy." He added that India weathered the "economic storm" due to the prudent policy.</p>.<p>- Quoting IMF report stating that the economic effects of the war are spreading far, Das said, "Shortages and volatility in commodities and financial markets are becoming more acute."</p>.<p>- In its first increase in borrowing costs since August 2018, Das said it would "increase the policy repo rate by 40 basis points to 4.40 per cent with immediate effect."</p>.<p>- "Situation is changing and our actions will be tailored accordingly," Das said adding that today’s decision may be seen as reversal of rate action of May 2020.</p>.<p>- Das mentioned about an off-cycle meeting being held by the MPC between May 2 & May 4. The MPC has decided to maintain accommodative stance to control inflation and support growth.</p>.<p>- RBI Governor said that the food prices will continue to rise. "Nine out of the 12 food subgroups registered an increase in inflation in the month of March. High-frequency price indicators for April indicate the persistence of food price pressure," he added.</p>.<p>- "Geopolitical tension is pushing inflation," said RBI Governor.</p>.<p>- Das said that the sharp acceleration in headline CPI inflation in March 2022 to seven per cent was propelled in particular by food inflation. India is the world's largest importer of edible oils like palm oil and soya oil, which are trading at record highs.</p>.<p>- He further said, "Global economic recovery is losing momentum."</p>.<p>- The Cash Reserve Ratio has been increased by 50 basis points to 4.5 per cent of total demand and time liabilities, effective from May 21, 2022.</p>.<p>- "The biggest contribution to macro economic, financial stability would come with our effort to maintain price stability," RBI Governor said.</p>
<p>In a surprise move, Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday hiked the Repo Rate by 40 basis points to 4.40 per cent with immediate effect. </p>.<p>His address came amid soaring commodity prices across sectors. </p>.<p>The decision follows an unscheduled meeting of the Monetary Policy Committee (MPC), with all six members unanimously voting for a rate hike while maintaining the accommodative stance.</p>.<p><strong>Here are the key takeaways from Das's address:</strong></p>.<p>- While the inflation has remained above the targetted 6 per cent since January, RBI Governor Shaktikanta Das said the inflation print in April is also likely to be high. The retail inflation print for March stood at 6.9 per cent.</p>.<p>- Amid economic turmoil due to the ongoing Russia-Ukraine war, Das said, "The Indian economy has shown resilience amid tectonic shift in global economy." He added that India weathered the "economic storm" due to the prudent policy.</p>.<p>- Quoting IMF report stating that the economic effects of the war are spreading far, Das said, "Shortages and volatility in commodities and financial markets are becoming more acute."</p>.<p>- In its first increase in borrowing costs since August 2018, Das said it would "increase the policy repo rate by 40 basis points to 4.40 per cent with immediate effect."</p>.<p>- "Situation is changing and our actions will be tailored accordingly," Das said adding that today’s decision may be seen as reversal of rate action of May 2020.</p>.<p>- Das mentioned about an off-cycle meeting being held by the MPC between May 2 & May 4. The MPC has decided to maintain accommodative stance to control inflation and support growth.</p>.<p>- RBI Governor said that the food prices will continue to rise. "Nine out of the 12 food subgroups registered an increase in inflation in the month of March. High-frequency price indicators for April indicate the persistence of food price pressure," he added.</p>.<p>- "Geopolitical tension is pushing inflation," said RBI Governor.</p>.<p>- Das said that the sharp acceleration in headline CPI inflation in March 2022 to seven per cent was propelled in particular by food inflation. India is the world's largest importer of edible oils like palm oil and soya oil, which are trading at record highs.</p>.<p>- He further said, "Global economic recovery is losing momentum."</p>.<p>- The Cash Reserve Ratio has been increased by 50 basis points to 4.5 per cent of total demand and time liabilities, effective from May 21, 2022.</p>.<p>- "The biggest contribution to macro economic, financial stability would come with our effort to maintain price stability," RBI Governor said.</p>