RBI Repo Rate: The Reserve Bank of India’s Monetary Policy Committee has decided not to change the repo rate even during the second meeting of the financial year 2024. Reserve Bank Governor Shaktikanta Das announced that there will be no change in the repo rate. This means that it will remain at 6.50 per cent.
Last time during the MPS meeting of RBI held in April, there was no change in the repo rate. However, from May 2022 to March i.e. during the last financial year, there was an increase of 2.50 in the repo rate. Let us know what big announcements have been made by the RBI governor.
What big announcements did RBI Governor Shaktikanta Das make?
- The Reserve Bank has not made any change in the repo rate and it remains at 6.50 percent.
- Standing deposit facility rate remains unchanged at 6.25 per cent
- The Marginal Standing Facility rate and the Bank Rate are also unchanged and stand at 6.75 per cent.
- The RBI governor said that the CPI inflation rate is still above the RBI’s target of 4 per cent and is expected to remain above it till 2023-24 as per estimates.
Governor expressed concern about monsoon
Governor Shaktikanta Das has also expressed concern about rising inflation. Inflation remains a risk to the economy given the uncertainty in weather and volatility in international commodity prices and financial markets, he said. However, experts believe that if the monsoon is good, it will go a long way in keeping inflation under control.
Due to the control of inflation and monsoon, RBI can reduce the repo rate.
How will be the inflation during the current financial year
During the current financial year, the RBI has estimated the CPI inflation rate to be at 5.1 percent. RBI’s inflation forecast on a quarterly basis is expected to be 4.6 per cent for the first quarter of FY2024, 5.2 per cent in the second quarter of the current financial year, 5.4 per cent for the third quarter and 5.2 per cent for the last quarter.
RBI GDP growth rate
The Reserve Bank of India has kept the GDP growth rate at 6.5. The GDP growth rate on a quarterly basis is estimated to be 8 per cent for the first quarter of the current financial year, 6.5 per cent in Q2FY24, 6 per cent in Q3FY24 and 5.7 per cent in Q4FY24. The governor said that the Reserve Bank will be good in liquidity management. RBI Governor Shaktikanta Das said the MPC will take further decisions as needed to keep inflation expectations firm. He said that the real policy rate will remain positive.
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