Insights into RBI's Monetary Policy: 6.5% GDP Growth Forecast for 2023-24"
Live Updates on RBI's Monetary Policy: The Reserve Bank of India (RBI) has made the unanimous decision to maintain the policy repo rate at 6.5%. The Standing Deposit Facility Rate remains at 6.25%, while the Marginal Standing Facility Rate and Bank Rate also remain unchanged at 6.75%. The primary focus continues to be on gradually withdrawing accommodation to ensure that inflation aligns with the target.
During the meeting of the monetary policy committee (MPC), which consists of three members from the RBI and three external members, it was unanimously agreed to keep the repo rate steady at 6.50% for the second consecutive meeting. Governor Shaktikanta Das confirmed the unanimous decision of the MPC to maintain the repo rate. The Standing Deposit Facility Rate remains at 6.25%, while the Marginal Standing Facility Rate and Bank Rate also remain unchanged at 6.75%. The majority of five out of six MPC members voted to remain focused on withdrawing accommodation in order to achieve progressive alignment of inflation with the target.
Since May 2022, the central bank has raised the repo rates by a total of 250 basis points, aiming to combat inflation, which has started to decline.
Key highlights from the MPC review include:
- The GDP projection for FY24 remains unchanged at 6.5%, as stated by RBI Governor Das.
- Headline inflation is currently above the target and is projected to remain so.
- By a majority of five out of six members, the MPC has decided to maintain its focus on withdrawing accommodation.
- The Indian economy and financial sector demonstrate resilience, with domestic macro fundamentals strengthening.
- The pace of global economic activity is expected to decelerate due to the geopolitical situation.