RBI Monetary Policy Key Highlights: The Reserve Bank of India’s Monetary Policy Committee (MPC) has opted to maintain the repo rate at 6.5% for the ninth consecutive meeting. RBI Governor Shaktikanta Das announced this decision in the third bi-monthly monetary policy for the current financial year, which was made with a 4:2 majority. The MPC also decided to continue with the withdrawal of accommodation stance.
Key takeaways from RBI MPC meeting from Governor Shaktikanta Das speech:
-RBI keeps benchmark interest rate unchanged for 9th time in a row at 6.5%.
-RBI decides to continue with withdrawal of accommodative monetary policy stance.
-RBI keeps growth projection unchanged at 7.2% for current financial year
-CPI inflation estimate for FY25 is also maintained, it’s seen at 4.5%
-MPC cannot afford to look through persistently high food inflation as it may spillover, cannot and should not become complacent because core inflation has fallen considerably
-Retail inflation projected at 4.5 pc during FY25 assuming normal monsoon.
-Overall inflation trajectory moderating, expect continued moderation, but need to be watchful
-Current Account Deficit expected to stay within sustainable level Apr-Jun, FDI flows picked up in FY25, gross FDI up 20% Apr-May
-UPI tax payment limit increased to Rs 5 lakh from Rs 1 lakh
-RBI proposes steps to speed up clearance of cheques to few hours,
-India’s forex reserves touch record high of USD 675 bn as of August 2
-Indian financial system remains resilient, gaining strength from broader macroeconomic stability
-Inflation and growth evolving in balanced manner, though we need to remain vigilant on food prices front