Highlights of RBI monetary policy

Following are the highlights of the RBI's fourth monetary policy review for the fiscal year 2022-23 announced by Governor Shaktikanta Das: * Key short-term lending rate (repo) raised by 50 basis points (bps) to 5.4 percent; third consecutive hike

In all, 140 bps hike in repo since May 2022 to check inflation

GDP growth projection for 2022-23 retained at 7.2 percent (pc).

GDP growth projection: Q1 at 16.2 pc; Q2 at 6.2 pc; Q3 at 4.1 pc; and Q4 at 4 pc

Real GDP growth for Q1:2023-24 projected at 6.7 percent

Domestic economic activity exhibiting signs of broadening

Retail inflation projection too retained at 6.7 pc for 2022-23

Inflation projection: Q2 at 7.1 pc; Q3 at 6.4 pc; and Q4 at 5.8 pc; Q1:2023-24 at 5 pc

India witnessed large portfolio outflows of USD 13.3 billion in FY23 up to August 3

Financial sector well capitalized and sound

India's foreign exchange reserves provide insurance against global spillovers

Monetary Policy Committee decides to remain focused on withdrawal of the accommodative stance to check inflation

Depreciation of rupee more on account of appreciation of US dollar rather than weakness in macroeconomic fundamentals of the Indian economy

RBI to remain watchful and focused on maintaining the stability of the rupee

The rupee depreciated by 4.7 pc against the US dollar this fiscal year till August 4

India's foreign exchange reserves remain the fourth largest globally

Mechanism to be activated to allow NRIs to use Bharat Bill Payment System for payments of utility and education on behalf of their families in India

Next meeting of the rate-setting panel scheduled for September 28-30, 2022.