RBI MPC Meeting: Repo rate unchanged; growth forecast raised; key highlights of December policy meeting

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Bank of India (RBI) refrained from surprising the market as on expected lines it kept policy rates and stance unchanged on Friday, December 8. The Monetary Policy Committee (MPC) of the RBI unanimously decided to keep the repo rate unchanged at 6.5 per cent after its December meeting. The MPC maintained the policy stance of 'withdrawal of accommodation' by the majority of 5 out of 6 members.

The central bank underscored India's economic resilience while the global economic environment remains fragile. It raised its real GDP projections but maintained its CPI estimate for the current financial year (FY24). Here are the key highlights of RBI Governor Shaktikanta Das' speech after the MPC meeting: On expected lines, the RBI MPC kept the repo rate and monetary policy stance unchanged, keeping the evolving macroeconomic situation in mind.

RBI kept the repo rate unchanged at 6.5 per cent and maintained the policy stance of 'withdrawal of accommodation'. As inflation remains above RBI's target of 4 per cent and the global economic environment remains fragile even as India's growth has been remarkable, the RBI wants to stay ready to act when required. Also Read: RBI MPC Meeting: Repo rate unchanged at 6.5%, ‘withdrawal of accommodation’ stance The RBI raised its real GDP growth projection for FY24 to 7 per cent from 6.5 per cent earlier with Q3 GDP at 6.5 per cent (against the estimates of 6 per cent earlier) and Q4 GDP at 6 per cent (against the estimates of 5.7 per cent earlier).