RBI Monetary Policy: Repo Rate Unchanged, GDP Growth Forecast
By Rediff Money Desk, MUMBAI 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.
![RBI Monetary Policy: Repo Rate Unchanged, GDP Growth Forecast](https://im.rediff.com/money/2020/aug/06inflation.jpg)
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.
* 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.
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- GTL Infrastructure
- 2.93 ( -4.87)
- 226206286
- IFL Enterprises
- 1.30 (+ 4.84)
- 81461564
- Vodafone Idea L
- 16.79 (+ 0.66)
- 67447398
- NCL Research
- 0.95 ( -4.04)
- 31996628
- Franklin Industries
- 3.73 (+ 3.32)
- 21511209
MORE NEWS
![Navi Mumbai...](https://im.rediff.com/80-80/money/2021/jun/10navi-mumbai-airport7.jpg)
Navi Mumbai Airport ILS Signal Testing Begins
The Airports Authority of India (AAI) has begun ILS signal testing at the...
![Air India VRS for...](https://im.rediff.com/80-80/money/2020/sep/09tata-vistara-3.jpg)
Air India VRS for Non-Flying Staff Ahead of...
Air India has announced a voluntary retirement scheme (VRS) and voluntary separation...
Fisher Groups Oppose WTO Fisheries Subsidy Talks
Small-scale fisher groups from India, Indonesia, and Bangladesh demand WTO keep...