RBI MPC Meeting: The Reserve Bank of India has today announced the decisions of its bi-monthly Monetary Policy Committee and there has been no change in the policy rates. Out of the 6-member Monetary Policy Committee of RBI, 5 members have voted with majority in favor of not making any change in the rates of Repo Rate and MSF, Bank Rate. RBI Governor Shaktikanta Das, while announcing the minutes of the Monetary Policy Committee meeting, has given a good estimate regarding the real GDP of the country. Along with this, he also said that the Indian economy is strong, it is continuously progressing confidently on the path of growth.
Know what was the most special thing in RBI's monetary policy
RBI Governor has kept the policy rate repo at 6.5 percent for the sixth consecutive time. Maintaining the repo rate at 6.5 percent means that there will be no change in EMIs on various loans including home loan, car loan.
Know what target has been set for the country's real GDP –
For the current financial year i.e. for the year 2023-24, real GDP is estimated to be 7.3 percent. The real GDP rate for the next financial year i.e. 2024-25 has been estimated at seven percent. This is the estimate of real GDP for the four quarters of the next financial year.
First quarter of 2024-25 – 7.2 percent
Second quarter of 2024-25 – 6.8 percent
First quarter of 2024-25 – 7 percent
First quarter of 2024-25 – 6.9 percent< /p>
What has been estimated for retail inflation-
Along with this, RBI has estimated the retail inflation rate to be 5.4 percent in the current financial year. The CPI or retail inflation rate for the next financial year i.e. 2024-25 is estimated to be 4.5 percent. Know the forecast of retail inflation for the next four quarters
First quarter of 2024-25 – 5 percent
Second quarter of 2024-25 – 4 percent
First quarter of 2024-25 – 4.6 percent
First quarter of 2024-25 – 4.7 percent< /p>
Know other points of RBI policy
The lowest fluctuation was seen in the Indian Rupee in the financial year 2023-24. The exchange rate remains quite stable.
India's foreign exchange reserves stand at $622.5 billion which is sufficient to meet all foreign commitments.
India's services exports have been strong in the October-December quarter of the financial year 2023-24.
India will remain at the forefront in terms of remittances from abroad.
RBI Governor said that we expect that the units coming under the purview of regulation will give top priority to the nature of compliance, consumer protection and protection.
The full impact and benefits of the change in policy rates have not yet reached the loan market.
Rural demand continues to grow, urban consumption remains strong.
Significant reduction in current account deficit
There has been a significant reduction in the country's current account deficit and it has come down to 1 percent in the second quarter (July-September) of the current financial year i.e. the year 2023-24. In the second quarter of the previous financial year i.e. 2022-23, it was at 3.8 percent.
RBI Governor's final comment
Summing up the decisions taken in the three-day meeting of the Monetary Policy Committee (MPC) that began on Tuesday, RBI Governor Shaktikanta Das said, "After considering the circumstances, the MPC has decided to maintain the repo rate at 6.5 percent. With this, the MPC has also decided to stick to its stance of withdrawing the liberal stance. Despite global challenges, the country's economy remains strong. On one hand the economic growth rate is increasing, while on the other hand inflation is decreasing. Our foundation is strong. Indian economy has been successful in maintaining financial balance amidst global challenges which is helpful for the economic growth rate."
According to the interim budget, the government is following the path of fiscal consolidation. The pace of economic activity is expected to continue in 2024-25 and the MPC is committed to keeping the retail inflation target at four percent. The global growth rate is expected to remain stable in the year 2024. In this too, the growth pace of the Indian economy is accelerating and it is surpassing the estimates of most financial experts. Therefore, amidst uncertainty at the global level, the country's economy is showing strength.
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