RBI MPC Meeting: Growth resilient but inflation remains a risk; key takeaways from RBI policy decision

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Shaktikanta Das led the monetary policy committee (MPC) unanimously decided to keep the repo rate unchanged at 6.50 per cent for the third straight meeting in a row. The MPC also decided to keep the policy stance unchanged as ‘Withdrawal Of Accommodation’. “The monetary policy committee unanimously decided to keep the repo rate unchanged at 6.50 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," said Das. Read more: RBI monetary policy: Shaktikanta Das led MPC keeps repo rate steady at 6.50%. Predicts 6.5% GDP growth in FY24 Here are the key highlights of RBI's August policy meeting: 1.

India's robust growth outlook: The RBI Governor underscored that the Indian economy is the fifth largest economy in the world and India's contribution to global growth is to the tune of 15 per cent. RBI projected real GDP growth for FY24 at 6.5 per cent with Q1 at 8 per cent, Q2 at 6.5 per cent, Q3 at 6.0 per cent, and Q4 at 5.7 per cent. Real GDP growth for Q1FY25 is projected at 6.6 per cent.

2. Inflation remains a challenge: Das said while inflation has eased, the job is not done. He emphasised RBI remains focused to achieve an inflation target of 4 per cent for a longer period.

He said that amid challenges in the global economy, India has managed to keep inflation under control. “The MPC remains resolute in its commitment to aligning inflation to the 4 per cent target and anchoring inflation expectations," said Das. (More to come)