RBI Monetary Policy: The Monetary Policy Committee of the Reserve Bank of India decided on the policy rate with a 5:1 majority that there will be no change in the repo rate and it will be kept unchanged.
RBI Monetary Policy: The Reserve Bank of India has today announced the results of the first Monetary Policy Committee meeting for the financial year 2024-25. This MPC meeting started from April 3 and its results were released today. RBI Governor Shaktikanta Das said in the bi-monthly monetary policy review that the Reserve Bank is not making any changes in the repo rate and thus the repo rate has been maintained at 6.50 percent. The reverse repo rate is at 3.35 percent and the bank rate has been kept constant at 6.75 percent. The Monetary Policy Committee of RBI took the decision on the policy rate with a 5:1 majority.
Highlights of RBI Governor’s address
1. India’s foreign exchange reserves have reached a record high of $645.6 billion and this figure has been touched on March 29, 2024. Some time ago there were concerns regarding foreign exchange reserves but RBI handled this issue firmly and maintained confidence.
2. There has been a decline in the core inflation rate but it is above the RBI target of 4 percent. Bringing it to a controlled target remains one of the priorities.
3. In the interest of the economy, it is necessary that CPI i.e. Core Price Inflation be brought within the prescribed range.
4. RBI is in a better position to deal with important economic issues and take necessary steps. The MPC will remain steadfast in its commitment to bring inflation in line with the RBI’s target of four percent.
5. There is concern at the global level due to political tension and obstacles on trade routes.
6. The MPC stands firm on its decision to withdraw the liberal stance and the stance of withdrawal of accommodation has been kept unchanged.
7. A target of 7 percent or more has been set for GDP in all four quarters of financial year 2025. A target of 6.9 percent has been set for the second quarter only.
8. The stability of the Indian Rupee is in line with the strength of the Indian economy and is seen to be on a solid base.
9. Investment in government securities and government bonds is increasing rapidly in the country.
10. There is continuous fluctuation in food inflation rate, but in the second quarter of the financial year 2025, it is expected to come within the target of 4 percent set by RBI and remain at 3.8 percent.
