Original Article
ISSN (Online): 2582-7472
ShodhKosh: Journal of Visual and Performing Arts
Enhancing Connections in Visual and Performing Arts:
Multidisciplinary Insights in Architecture and Planning
July-December 2023 4(2 ECVPAMIAP), 161–165
How to cite this article (APA): Trivedi, A., Bhadauria, S. V. S., Sul, S., Singh, T., and Joshi, V. (2023). RBI'S Interest Rate Hikes and
Inflation Control: Analyzing the Repo Rate Movements from 2022 To 2023. ShodhKosh: Journal of Visual and Performing Arts, 4(2
ECVPAMIAP), 161–165. doi: 10.29121/shodhkosh.v4.i2 ECVPAMIAP.2023.2453
161
RBI'S INTEREST RATE HIKES AND INFLATION CONTROL: ANALYZING THE REPO
RATE MOVEMENTS FROM 2022 TO 2023
Dr. Arpit Trivedi
1
, Shivendra V. S. Bhadauria
2
, Suraj Sul
3
, Trishal Singh
4
, Vraj Joshi
5
1
Associate Professor, Dr. D. Y. Patil B-School, Pune, India
2
Assistant Professor, Dr. D. Y. Patil B-School, Pune, India
3
Student, Dr. D. Y. Patil B-School, Pune, India
ABSTRACT
Unlike the usual, this April 2023, The Reserve Bank of India kept its repo rate at 6.5 %,
this was right after making six hikes at a stretch, resisting market projections for a 25-
basis point rate hike. The effect of the recent financial turbulence was closely monitored
by the body.
It was stated by policymakers that they were still focused on accommodation withdrawal,
thus more tightening was possible.
Rate increases were put on hold only for this conference. From May 2022, the RBI
increased rates by a total of 250 basis points, bringing borrowing costs up to levels seen
in January 2019. The board also reduced its inflation forecast to 5.2% from 5.3% and
increased its growth estimate to 6.5% from 6.4% for the fiscal year that begins in April.
This article examines the Reserve Bank of India's recent interest rate increases in the
perspective of reducing inflation.
Corresponding Author
Dr. Arpit Trivedi,
arpit.trivedi@dpu.edu.in
DOI 10.29121/shodhkosh.v4.i2
ECVPAMIAP.2023.2453
Funding: This research received no
specific grant from any funding agency in
the public, commercial, or not-for-profit
sectors.
Copyright: © 2023 The Author(s).
This work is licensed under a Creative
Commons Attribution 4.0
International License.
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Keywords: RBI, Repo Rate, Inflation Control, Monetary Policy, Borrowing Costs,
Economic Growth, Central Bank Policy, Inflation Forecast
1. INTRODUCTION
The Reserve Bank of India in April 2023 kept the repo rate steady, keeping the key benchmark interest rate at 6.5
percent, adding that it would not hesitate to act in the future if the situation warranted. The central bank has raised rates
by 250 basis points since May last year. RBI Governor Shaktikanta Das said the central bank's policy remained focused
on "accommodative withdrawal", signaling it could consider further rate hikes if necessary. The pause in rate hikes is
"only for this meeting", Shaktikanta Das said. "If I have to characterize today's monetary policy in just one line ... it's a
pause, not a pivot," he told a news conference after announcing the policy review. Real gross domestic product (GDP)
growth for 2023-24 is projected at 6.5%, with 7.8% in Q1 (Q1), 6.2% in Q2, 3. Q4 6.1% and Q4 5.9%, the RBI governor