Following are the highlights of RBI’s bi-monthly monetary policy announced by Governor Shaktikanta Das:

Shaktikanta Das

Photograph: ANI Photo

  • Benchmark interest rate or repo rate kept unchanged at 6.5%
  • GDP growth for 2024-25 projected at 7%, lower than 7.3% this fiscal
  • Retail inflation to average 5.4% this fiscal, to come down to 4.5% 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.



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