RBI MPC unanimously decided to keep the repo rate unchanged at 6.5 per cent for the third time in a row, said RBI governor Shaktikanta Das.
While announcing the decisions of the three-day Monetary Policy Committee (MPC) Das said, “The MPC decided to remain watchful and evaluate the situation.”
This comes amid the soaring food inflation in the country which the experts believe will put pressure on CPI inflation and despite a rate hike by the US Fed in July.
“The monetary policy committee unanimously decided to keep the repo rate unchanged at 6.50 per cent. Consequently, the standing deposit facility (SDF) rate remains at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent," said Das.
Here are some key takeaways from the MPC:
• Banks need to maintain incremental CRR of 10% from august 12, existing CRR remains unchanged at 4.5%
• RBI maintain status quo and sits on pause for 3rd time in a row, repo rate unchanged at 6.5%
• RBI raises inflation forecast for FY24 to 5.4%
• MPC retains Indian economy's real GDP growth projection for FY24 at 6.5%
• CPI inflation for April-June 2024 seen at 5.2%
• Policy stance unchanged at 'withdrawal of accommodation'
• Q3PF24 CPI inflation forecast raised to 5.7% from 5.4% earlier
• India's CAD was contained at 2% of GDP in FY23
• Expect CAD to remain eminently manageable during the current financial year
• RBI governor proposed to put in place a transparent framework for reset of interest rates on floating-interest loans
• Das announced the revision in the regulatory framework for Infrastructure Debt Funds (IDFs)
