The Reasons Why Money Is Becoming Costlier In India

RBI raised its key repo rate by a smaller 35 basis points to 6.25%, to curb lingering inflation pressures. This is RBI's fifth straight increase in the key lending rate. RBI Governor Shaktikanta Das in his policy statement said "Our financial system remains robust and stable, and corporates are healthier than before. India is widely seen as a bright spot in an otherwise gloomy world". RBI has also lowered its GDP growth forecast for FY23 to 6.8% from 7% earlier. The MPC maintained its stance on "withdrawal of accommodation", with four out of six members voting in favour as the committee continues to focus on pulling out high levels of cash from the banking system without stunting growth. Five of the six MPC members voted in favour of the rate hike increase. But what will be the implication of this on Aam Aadmi? Was this hike needed? Join us as BTTV's Siddharth Zarabi discusses these key questions with Indranil Pan, Chief Economist, YES Bank