RBI announces repo rate by 40 basis points to 4.40%
MSF rate and the Bank Rate to 4.65 per cent . RBI said, as the war draws on and sanctions and retaliatory actions intensify, shortages, volatility in commodity and financial markets, supply dislocations and, most alarmingly, persistent and spreading inflationary pressures are becoming more acute with every passing day. Debt distress is rising in the developing world amidst capital outflows and currency depreciations. Recent GDP releases suggest that the global economic recovery is losing pace. By announcing the Decisions and Deliberations of the Monetary Policy Committee (MPC), RBI Governor Shaktikanta Das said, “against this backdrop, the Monetary Policy Committee decided to hold an off-cycle meeting on 2nd and 4th May, 2022 to reassess the evolving inflation-growth dynamics and the impact of the developments after the MPC meeting of April 6-8, 2022.” Based on this assessment of the macroeconomic situation and the outlook, the MPC voted unanimously to increase the policy repo ra