RBI monetary policy: MPC keeps repo rate unchanged at 6.50%; 10 Key Points Mentioned by the Governor

RBI monetary policy: MPC keeps repo rate unchanged at 6.50%; 10 Key Points Mentioned by the Governor

Written by Sanjay Kumar

The Reserve Bank of India on Thursday (April 6) announced its bimonthly monetary policy and kept the repo rate unchanged at 6.50 percent.

Governor Shaktikanta Das announced the monetary policy statement, which was the first of the current financial year. During the announcement, he mentioned that the Monetary Policy Committee (MPC) of the RBI had unanimously decided to keep the repo rate unchanged at 6.50 percent.

Since May last year, the RBI has raised the repo rate six times to control runaway inflation.

“The MPC also decided by a majority of five out of six members to remain focused on “withdrawal of accommodation” to ensure that inflation progressively aligns with the target while supporting growth, the RBI governor said.

The RBI governor said, “Amidst this volatility, the banking and non-banking financial service sector in India remain healthy, and financial markets have evolved, in an orderly manner. Economic activity remains resilient, and real GDP growth is expected to have been 7 percent in FY23.”

Key Highlights from Reserve Bank of India’s (RBI) MPC Announcements: Repo Rate Unchanged, Inflation Projections, GDP Growth Forecasts, and More:

1. In its latest meeting of the MPC, the Reserve Bank of India (RBI) unanimously decided to keep the repo rate at 6.50 percent.
2. For FY24, the central bank has predicted that inflation will drop to 5.2 percent, with Q1FY24, Q2FY24, Q3FY24, and Q4FY24 projected at 5.1 percent, 5.4 percent, 5.4 percent, and 5.2 percent, respectively.
3. The Governor of RBI, Shaktikanta Das, stated that the MPC has projected GDP growth for 2022-23 at 7 percent and 6.5 percent for 2023-24.
4. Specifically, the RBI Governor projected GDP growth for Q1 at 7.8 percent, Q2 at 6.2 percent, Q3 at 6 percent, and Q4 at 5.8 percent.
5. As of March 31, 2023, India’s foreign exchange reserves reached $578.4 billion.
6. While passenger vehicle sales logged strong growth in February, the consumer durables sector contracted in January among urban demand indicators.
7. On the other hand, the Governor noted that tractors and two-wheeler sales were robust among rural demand indicators.
8. Customers can now check unclaimed money held with banks through a common portal that enables them to check such amounts across all banks in one click.
9. Governor Das added that the central bank will also allow the operations of pre-sanctioned credit lines with banks to expand the scope of UPI.
10. Following the RBI’s decision to maintain the repo rate at 6.50 percent, Sensex rose over 200 points, and Nifty crossed the 17,600 mark.

Must Read:-

• Top 10 Largest Oceans and Seas in the World
• Top 10 automobile companies in India 2023
• Top 10 Electrical Companies in India 2023
• Top 10 Real Estate Companies in India-2023
• Top 10 most awaited & upcoming Hindi web series 2023-24 
• Top 10 Clothing Brands in India 2023
• Top 10 best cultures in the world-2023
• Top 10 best country to work and live in 2023
• Top 10 best country for education 2023
• Top 10 Most Followed Celebrities on Instagram 2023
• The Inspiring Success Story of Bear Grylls
• Top 10 Business Coaches in The World to Guide Entrepreneurs In 2023
• Top 10 movies based on True Stories you must watch before you die
• Top 10 Best Online Doctor Consultation Apps in USA