8 Apr 2022 , 03:01 PM
This has begun to impact growth and supply shortages. High commodity prices and fuel hikes will result in higher input costs and thus, have a cascading effect across the economy. Accordingly, the RBI estimates FY2023 growth at 7.2% vs 7.8% earlier and FY2023 inflation at 5.7% against 4.5% earlier. The RBI has estimated crude oil prices at 100$ a barrel during the year.
While there was no increase in repo rate — the central bank moved the SDF and MSF corridor to 3.75% and 4.25% respectively. In effect, the overnight rate will move to 3.75%. With VRRR and VRR being the key liquidity management tools — fixed rate repo as a benchmark has lost its relevance. In essence, overnight rates have been hiked to 3.75%.
Overall, given the geopolitical situation, the RBI will use all measures to maintain economic stability and will likely dynamically manage the situation. While the RBI has further extended liquidity support, it may be time to rethink its accommodative stance in the coming weeks. The RBI continues to stay committed to support growth and manage inflation within the targeted benchmarks.
Related Tags
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Securities Support WhatsApp Number
+91 9892691696
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.