FM Sitharaman says RBI's rate hike not a surprise, calls it part of synchronised event globally
Zee News
Finance Minister Nirmala Sitharaman said the recent decision of RBI to hike key policy interest rates is a part of the synchronised event by the central banks globally.
New Delhi: Finance Minister Nirmala Sitharaman on Saturday, May 7, said the recent decision of the Reserve Bank of India (RBI) to hike key policy interest rates is a part of the synchronised event by the central banks globally.
Addressing a media event, Sitharaman said the RBI’s decision to increase policy rates has not surprised the government.
"It (rate hike) came as a surprise because it came between the two monetary policy reviews," the finance minister said. The Reserve Bank of India on May 4 increased the policy repo rate by 40 basis points to 4.40 per cent. The central bank also announced a 0.50 per cent increase in the cash reserve ratio (CRR).
The decision was taken in the unscheduled meeting of the RBI`s Monetary Policy Committee.
The Monetary Policy Committee (MPC) 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, RBI Governor Shaktikanta Das had said while making the announcement about the rate hike.
