RBI Monetary Policy: Repo Rate Unchanged, GDP Growth Forecast
Feb 08, 2024 11:09
The Reserve Bank of India (RBI) kept the repo rate unchanged at 6.5% in its bi-monthly monetary policy. GDP growth is projected at 7% for 2024-25, while inflation is expected to average 5.4% this fiscal.
Illustration: Uttam Ghosh/Rediff.com
Mumbai, Feb 8 (PTI) Following are the highlights of RBI's bi-monthly monetary policy announced by Governor Shaktikanta Das:
* Benchmark interest rate or repo rate kept unchanged at 6.5 pc
* GDP growth for 2024-25 projected at 7 pc, lower than 7.3 pc this fiscal
* Retail inflation to average 5.4 pc this fiscal, to come down to 4.5 pc in 2024-25
* Monetary transmission by financial institutions still remains incomplete
* Current economic momentum to sustain in the next fiscal
* Recovery in rabi sowing, sustained profitability in manufacturing, resilience of services to support economic activity in 2024-25
* Investment cycle gaining steam, signs of revival in private sector capex
* Indian economy making confident progress on strong, sustained growth path
* Rural demand continues to gather pace, urban consumption remains strong
* Govt adhering to fiscal consolidation path; domestic economic activity strong
* Uncertainty in food prices continue to impinge on headline inflation
* Increasing geopolitical tension impacting supply chain, putting pressure on commodity prices
* Forex reserve at USD 622.5 billion; comfortable for meeting foreign obligations
* Domestic financial system remains resilient with a healthy balance sheet
* Regulated entities should accord highest priority to compliance, consumer interest protection
* RBI to introduce an offline functionality in CBDC-Retail for transactions in areas with poor or limited internet connectivity.
* Exchange rate of Indian rupee remained fairly stable in the current fiscal
* Next monetary policy committee (MPC) meeting scheduled during April 3-5, 2024.
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