Mumbai: The Reserve Bank of India (RBI) has opted to maintain the repo rate at 6.5 percent for the 11th consecutive time, reinforcing its neutral monetary policy approach.
During the Monetary Policy Committee (MPC) meeting held on Friday, Governor Shaktikanta Das revealed that the decision was reached by a 4:2 majority.
He stated, "Consequently, the Standing Deposit Facility (SDF) rate remains at 6.25 percent, while the Marginal Standing Facility (MSF) rate and the Bank Rate are both set at 6.75 percent."
In discussing India's economic outlook, the Governor provided an updated GDP growth forecast for FY25.
He noted, "The real GDP growth for 2024-25, which is the current fiscal year, is now estimated at 6.6 percent, with projections of 6.8 percent for Q3 and 7.2 percent for Q4."
Additionally, the RBI Governor announced a reduction in the Cash Reserve Ratio (CRR) by 50 basis points, lowering it from 4.5 percent to 4 percent. This adjustment is expected to inject Rs 1.15 lakh crore of liquidity into the banking sector.
The inflation forecast for FY25 has been revised upward from 4.5 percent to 4.8 percent, according to the RBI.
The MPC also reached a unanimous agreement to maintain a neutral stance, emphasizing its commitment to aligning inflation with the target sustainably.
The Reserve Bank of India's primary responsibility is to ensure price stability while also fostering growth, Das stated.
In discussing India's economic progress, Shaktikanta Das remarked, "India has experienced over 8 percent GDP growth in the past three years. Although there have been recent fluctuations in both growth and inflation rates, the economy remains on a steady and balanced trajectory towards advancement."
Das also underscored India's robust standing in a swiftly changing global economic environment. "As the global economy undergoes significant changes, India is strategically positioned to capitalize on emerging trends as it continues its transformative journey," he added.
