In arriving at its decision, the Committee weighed various economic developments, including the weakening global output due to supply chain disruptions worsened by the Russia-Ukraine war. This, along with COVID-19 lockdown in China, persisting global inflationary pressures, tightening financial conditions owing to broad-based aggressive policy, capital flow reversals in emerging markets and its consequent upward pressure on exchange rates were all considered.
The Monetary Policy Committee (MPC) held its fifth meeting of the year on the 26th and 27th of September 2022. The meeting ended with a unanimous vote to raise the Monetary Policy rate (MPR) and the Cash Reserve Ratio (CRR), while the other policy parameters were maintained. This hike marks the third consecutive increase in the MPR, following two rate increases in May (1.50%), and July (1.00%).