- By Aditya Pratap Singh
- Fri, 05 Apr 2024 10:42 AM (IST)
- Source:JND
RBI Monetary Policy Meeting: RBI Governor Shaktikanta Das on Friday announced that the 6-member committee has decided to keep the repo rate unchanged at 6.50 percent voted by 5:1 majority. The two-day review meeting of the Monetary Policy Committee (MPC), the RBI's rate-setting panel, began on April 3 and concluded today on April 5. The six-member MPC, headed by Governor Das, reviewed the impact of global headwinds on the economy. Determinants such as India's GDP growth and inflation trajectory were considered.
The monetary committee also decided to keep the Standing Deposit Facility (SDF) rate unchanged at 6.25 percent and the Marginal Standing Facility (MSF) rate and bank rate at 6.75 percent, said the governor.
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CPI Inflation
The governor said that core inflation declined steadily and to ensure meeting the target of 4 percent, the MPC must be ‘actively disinflationary. CPI inflation for FY25 is projected at 4.5 percent, said the governor. In Q1FY25 it is expected to be at 4.9%, and in Q2FY25 the consumer price index (CPI) inflation is projected at 3.8%, For Q3FY25, it is projected at 4.6%, and for Q4FY25 the CPI inflation is expected to be at 4.5%.
GDP Growth
The Reserve Bank of India (RBI) has forecast India's real GDP growth at 7% for FY25, which includes 7.1% in Q1FY25, 6.9% for Q2, and 7% for Q3 and Q4.
The RBI Governor stated that robust rural demand, improving employment conditions, and improved inflation will boost private consumption, resulting in better investment opportunities. The government's growth forecast for FY24 is 7.6%, while the RBI's estimate is 7%. In the previous policy review, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) projected a GDP growth rate of 7% for the fiscal year 2025.
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