RBI Monetary Policy maintains 6.5% repo rate, projects 5.4% inflation in FY24; see top 10 highlights

 RBI Monetary Policy:

 Maintains a 6.5% repo rate and checks for ten Important points RBI Monetary policy: The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) voted on Thursday to maintain the current levels of its key policy rates.  The RBI's bi-monthly Policy Committee (MPC) will end its three-day discussion today after starting on February 6.

Ten important points :

1. With five of the six members voting in favor of the rate decision, RBI maintains the repo rate at 6.5%. Additionally, experts anticipated that the repo rate would stay at 6.5%.

2. A majority of the MPC's six members also agreed to continue concentrating on the removal of accommodation in order to guarantee that inflation gradually approaches the objective while providingGovernor of the Reserve Bank of India Shaktikanta Das stated in his remarks that monetary policy must remain aggressively disinflationary.

3. This decision, which follows the announcement of the Interim Budget on February 1, 2024, is the sixth in a row to remain unaltered.

See Also: RBI Policy: Governor Shaktikanta Das maintains 6.5% repo rates while maintaining emphasis on "withdrawal of accommodation."

4. According to the most recent announcement, the bank rate is 6.75%, the standing deposit facility rate is 6.25%, the marginal standing facility (MSF) rate is 6.25%, and the fixed reverse repo rate is 3.75%. 

The governor of the RBI stated that the MPC was still committed to keeping inflation within the 4% target range.

6. For 2023–2024, the Reserve Bank of India (RBI) has kept its inflation estimate at 5.4%. 

7. The CPI inflation estimate for January through March 2024 (Q4FY24) has been lowered from 5.2% to 5.0%.

8. For the forthcoming fiscal year 2024–2025, CPI inflation is expected to be 4.5%, with Q1 at 5%, Q2 at 4%, Q3 at 4.6%, and Q4 at 4.7%.

9. According to the RBI Governor, the economic momentum is anticipated to persist in the 2024–2025 fiscal year. The RBI Governor stated that a 7% GDP growth is anticipated for FY25.

10. The GDP growth estimate for Q1FY25 was increased from 6.7% to 7.2%, for Q2FY25 from 6.5% to 6.8%, for Q3FY25 from 6.4% to 7.0%, and for Q4FY25 from 6.9% to 7.9%.