The Monetary Policy Committee (MPC) of the Reserve Bank of India on August 10 decided unanimously to keep the policy repo rate unchanged at 6.50%.
| Photo Credit: The Hindu
The Monetary Policy Committee (MPC) of the Reserve Bank of India on August 10 decided unanimously to keep the policy repo rate unchanged at 6.50%.
Announcing the bi-monthly monetary policy on Friday, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) unanimously decided to keep the repo rate unchanged at 6.5 per cent.
The Governor said the real GDP growth for 2023-24 is projected at 6.5%. The latest CPI inflation projection for 2023-24 is at 5.4%, the same as projected previously. Indian forex reserves stood at $586.9 billion as on September 29.
Mr. Das said inflation is likely to ease in September, and the MPC would remain watchful of inflation and remain resolute in aligning inflation to the targeted level. Near-term inflation to soften on lowering of vegetable price and reduction in cooking gas cylinder rate, he added.
Domestic economy exhibits resilience on the back of strong demand, the Governor added.
Private sector capex is gaining ground as suggested by production of capital goods, he said.
The transmission of 250 basis point repo rate cut is still incomplete, the RBI Governor said.
The indications are that food inflation may not see sustained easing in Q3, the Governor added.
RBI may have to consider open market operation with regard to G-secs to manage liquidity, Mr. Das said.
RBI also has decided to double the gold loan under the bullet payment scheme to ₹4 lakh for Urban Cooperative Banks. The Payment Infrastructure Development Fund scheme has been extended by two years to December 2025. Internal Ombudsman Scheme to be further fine-tuned to safeguard the interest of customers, the Governor said.
The government has mandated the RBI to keep CPI inflation at 4 per cent with a margin of 2 per cent on either side.
