RBI maintains status quo, keeps repo rate unchanged at 6.5%

RBI Governor Shaktikanta Das. FILE/PTI.

The Reserve Bank of India (RBI) maintained status quo on policy rates, stance of its monetary policy and kept the repo rate unchanged at 6.5 per cent.

The decision was announced by RBI Governoe Shaktikanta Das during the RBI’s fourth bi-monthly monetary policy on Friday, October 6.

The three-day meeting of RBI Governor Shaktikanta Das-led Monetary Policy Committee (MPC) began on Wednesday, October 4

“It is retained at ‘Withdrawal Of Accommodation’ with 5 of 6 MPC members voting in favour of this,” Das said.

Standing Deposit Facility and Marginal Standing Facility rates also left unchanged at 6.25 per cent and 6.75 per cent.

MPC voted to remain focused on withdrawal of accommodation by 5 votes to 1.

RBI Monetary Policy: GDP growth forecast for FY24

– Q2FY24 GDP growth forecast unchanged at 6.5 per cent

– Q3FY24 unchanged at 6.0 per cent

– Q4FY24 GDP growth forecast unchanged at 5.7 per cent

The CPI inflation forecast for April-June 2024, or Q1FY25 has also been kept unchanged at 6.6 per cent.

CPI inflation forecast for FY24 at 5.4 per cent

– CPI inflation forecast for Q2FY24 raised to 6.4 per cent from 6.2 per cent

– CPI inflation forecast for Q3FY24 cut to 5.6 per cent from 5.7 per cent

– CPI inflation forecast for Q4FY24 left unchanged at 5.2 per cent

– CPI inflation forecast for April-June 2024 unchanged at 5.2 per cent

The RBI Governor said core inflation eased by around 140 basis points from its recent peak in January and further reduction is key to price stability.

“The future inflation trajectory will depend on many factors, although in the near term it may come down,” Das said.

The RBI Governor further said indications are that throughout October-December 2023, food inflation may not see sustained easing. “This requires careful monitoring incoming data and the outlook,” he added.

“Appropriate and timely action is needed to prevent any spillovers from food and fuel price shocks. These are non-negotiable necessities,” the RBI Governor said.

With inputs from agencies