The Reserve Bank of India (RBI) kept the repo rate unchanged at 6.5 pc in its December monetary policy. The central bank also lowered the GDP growth forecast for FY25 to 6.6 pc and raised inflation projection to 4.8 pc.
Photograph: ANI Photo
Mumbai, Dec 6 (PTI) Following are the highlights of the December monetary policy announced by the Reserve Bank Governor Shaktikanta Das on Friday:
* Key interest rate (repo) kept unchanged at 6.5 pc
* RBI continues with 'neutral' monetary policy stance
* Cash Reserve Ratio (CRR) reduced to 4 pc from 4.5 pc, to unlock Rs 1.16 lakh crore of bank funds
* RBI sharply lowers GDP growth forecast for FY25 to 6.6 pc from 7.2 pc
* Inflation projection for FY25 raised to 4.8 pc from 4.5 pc
* Collateral-free loan for agriculture sector raised to Rs 2 lakh per borrower from Rs 1.6 lakh
* Interest rate ceiling on FCNR (B) deposits raised
* Small finance banks permitted to extend pre-sanctioned credit lines through UPI
* RBI to launch podcasts for wider dissemination of information to general public
* RBI to set up an expert panel to develop a framework for responsible, ethical use of AI in the financial sector
* Next monetary policy meeting scheduled for February 5-7, 2025.
Home » Market News » RBI Monetary Policy December 2024: Repo Rate Unchanged, GDP Forecast Lowered
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