The central bank, however, hiked the key repo rate by 50 bps to rein in inflation. This was the second raise in a row this year, which came in-line with the Street’s expectations.
With this, the repo rate now stands at 4.9 per cent, up from 4.4 per cent. RBI Governor Shaktikanta Das added that the MPC has decided unanimously to keep policy stance ‘withdrawal of accommodation’.
On the inflation front, the central bank raised consumer price (CPI) or retail inflation forecast for FY23 to 6.7 per cent from 5.7 per cent. Das said retail inflation is likely to remain above 6 per cent during the first three quarters of FY23.
Sectorally, Banks, Financials, Metals, PSBs and Realty indices held strong gains on the Nifty. While, Auto, Pharma, FMCG and Consumer Durables were subdued.