RBI Announces Bi-Monthly Monetary Policy For Financial Year 2024-25; Keeps Repo Rate Unchanged For 7th Time In Row

The Reserve Bank of India has kept the repo rate unchanged for the seventh time in a row. Governor Shaktikanta Das announced the Bi-Monthly Monetary policy this morning. He said, the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5 per cent. Consequently, the Standing Deposit Facility (SDF) rate remains at 6.25 per cent and the Marginal Standing Facility (MSF) Rate and the Bank Rate at 6.75 per cent. Mr Das said, the MPC also decided to remain focused on the withdrawal of accommodation to ensure that inflation progressively aligns to the target while supporting growth.

The Governor said, real GDP growth for 2024-25 is projected at 7.0 per cent with Quarter 1 at 7.1 per cent; Quarter 2 at 6.9 per cent; Quarter 3 at 7.0 per cent; and Quarter 4 also at 7.0 per cent. 

Mr Das said, assuming a normal monsoon, CPI inflation for 2024-25 is projected at 4.5 per cent. Mr. Das said, that two years ago, around this time, CPI inflation had peaked at 7.8 per cent in April 2022. He said, that even though Inflation has come down significantly but it remains above the 4 per cent target given by the Government. Mr Das said, that food inflation continues to exhibit considerable volatility impeding the ongoing disinflation process.

The RBI Governor informed that India’s Foreign Exchange Reserves reached an all-time high of US 645.6 billion dollars as of March 29, 2024. He added that, as compared to the previous three years, the INR exhibited the lowest volatility in 2023-24, and that the INR was the most stable among major currencies during this period.