RBI MPC Highlights: Check Details Of All The Major Announcements By Governor Shaktikanta Das

RBI MPC: This session was the second monetary policy meeting for the fiscal year 2024-25. Six MPC meetings have been scheduled for the current fiscal year

The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) review meeting, chaired by RBI Governor Shaktikanta Das, concluded its three-day session on Friday, maintaining the status quo on the repo rate. Once again, the central bank has opted to keep the repo rate unchanged at 6.5 per cent, marking the eighth consecutive time. This session was the second monetary policy meeting for the fiscal year 2024-25. Six MPC meetings have been scheduled for the current fiscal year. The next meeting of the MPC is scheduled to take place from August 6th to 8th, 2024.

Highlights Of Major Announcements From RBI MPC Meeting:

The rate-setting panel decided to maintain the repo rate at its current level of 6.5 per cent with a majority vote of 4 in favour and 2 against.

The MPC has revised its projection for real Gross Domestic Product (GDP) growth for the fiscal year 2024-2025 to 7.2 per cent, an increase from the previous estimate of 7 per cent. This revision is based on current economic conditions and the expected impact of various policy measures.

The Reserve Bank of India (RBI) has maintained its inflation forecast for the current fiscal year at 4.5 per cent.

As of May 31, India's foreign exchange reserves surged to a record high, reaching $651.5 billion.

The RBI has decided to keep the Standing Deposit Facility (SDF) rate at 6.25 per cent while maintaining the Marginal Standing Facility (MSF) and bank rate at 6.75 per cent.

RBI Gover announced that the automatic balance replenishment for Fastag, NCMC, and UPI-Lite wallets will be integrated into the e-mandate framework.

The RBI plans to establish a Digital Payments Intelligence Platform that will leverage advanced technologies to reduce the risks associated with payment fraud.

The central bank has increased the threshold for bulk deposits from Rs 2 crore to Rs 3 crore.

Additionally, the deflation trend in fuel prices continues, while food inflation persists at elevated levels. The MPC remains watchful of external inflation risks, especially food inflation, as they could impede progress towards disinflation. The committee is dedicated to restoring inflation to the target rate of 4 per cent on a sustainable basis. Governor Das asserted that monetary policy has more flexibility in pursuing price stability.

"The Inflation growth balance is moving favourably. Growth is holding firm. Inflation continues to moderate, mainly driven by the core component, which reached its lowest level in the current series in April 2024. The deflation in fuel prices is ongoing; food inflation, however, remains elevated," said the RBI Governor.