RBI MPC Meeting: Here Are All The Major Announcements Made By Governor Das

RBI MPC Meeting: Six MPC meetings have been scheduled for the fiscal year commencing April 1, 2024

RBI MPC Meeting: This time as well the central bank kept the repo rate unchanged at 6.5 per cent for the seventh consecutive time.

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The Reserve Bank of India’s Monetary Policy Committee review meeting ( RBI MPC Meeting), chaired by RBI Governor Shaktikanta Das, concluded its three-day session on Friday, maintaining the status quo on the repo rate. This time as well the central bank kept the repo rate unchanged at 6.5 per cent for the seventh consecutive time. This marks the inaugural bi-monthly monetary policy session for the fiscal year 2024-25. Six MPC meetings have been scheduled for the fiscal year commencing April 1, 2024.

Major Announcements From April’s RBI MPC Meeting:

• The committee voted 5:1 to maintain the repo rate at its current level of 6.5 per cent after thorough deliberation, signalling a continuation of the existing monetary policy stance.
• The RBI gave a forecast for the Indian economy, anticipating a growth rate of 7 per cent in the fiscal year 2024-25, reflecting the central bank's outlook on the country's economic trajectory.
• Delving deeper into the growth projections, the Committee anticipates a growth rate of 7.1 per cent in the first quarter of the fiscal year 2024-25, followed by 6.9 per cent in the second quarter. Growth is expected to be sustained at 7 per cent each for the third and fourth quarters. The Committee underscores that risks to these projections are evenly balanced, reflecting a cautious yet optimistic approach.
• Notably, India's foreign exchange reserves have reached a historic milestone, surging to an all-time high of $645.6 billion as of March 29, 2024, underlining the robustness of the country's external financial position and its resilience to global economic challenges.
• The Consumer Price Index (CPI) inflation projection for the fiscal year 2024-25 remains unchanged at 4.5 per cent, reflecting the Committee's assessment of inflationary pressures within the economy and its commitment to maintaining price stability.

While announcing the committee’s decisions, Shaktikanta Das said, "Inflation is on a declining trajectory, and GDP growth is buoyant. At this juncture we should not lower our guard but continue to work towards ensuring that inflation aligns durably to the target. Our goal is in sight, and we must remain vigilant."