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RBI Monetary Policy 2024: RBI Maintains Current Repo Rates

RBI Monetary Policy 2024: Governor Shaktikanta Das announced that the RBI Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) maintained the 6.5% repo rate constant and is concentrating on the removal of accommodation. It predicts 7% real GDP growth in the financial year 2025, assuming that risks are evenly distributed. The average interest rate last increased from 6.25 percent to the current 6.5 percent in February 2023.

RBI Monetary Policy Highlights:

The RBI Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has maintained the 6.5 percent repo rate level. Governor Shaktikanta Das also remarked that it has decided to keep its attention on the removal of the accommodating posture. Following the announcement of the interim budget on February 1, 2024, this choice remains unchanged for the sixth time in a row.

Five of the six members of the RBI voted in favor of maintaining the current repo rate at 6.5%. Additionally, many anticipated that the repo rate would stay at 6.5 percent.

To ensure that inflation gradually approaches the target while promoting growth, the MPC also resolved, with a majority of five out of six members, to continue concentrating on the removal of accommodation. RBI Governor Shaktikanta Das stated in his statement that monetary policy must remain actively disinflationary.

The Reserve Bank of India has kept the 5.4% inflation estimate for 2023–2024 in place.

In the Upcoming financial year 2024–2025 is expected to see CPI inflation of 4.5%, with Q1 at 5%, Q2 at 4%, Q3 at 4.6%, and Q4 at 4.7%.

RBI Monetary Policy Committee Members

The six members of the RBI MPC are officials from the RBI and also outsiders. Three external members, two deputy governors, and the RBI governor are included in this.

  1. Shaktikanta Das, Governor of RBI
  2. Michael Debabrata Patra, Deputy Governor of RBI
  3. Rajiv Ranjan, Officer of RBI nominated by the Central Board, Member
  4. Prof. Ashima Goyal, Professor, Indira Gandhi Institute of Development Research, Member
  5. Prof. Jayanth R. Varma, Professor, Indian Institute of Management Ahmedabad, Member
  6. Dr. Shashanka Bhide, Senior Advisor, National Council of Applied Economic Research, Member.

RBI MPC Meeting Dates 2024-25

The Reserve Bank of India’s Monetary Policy Committee (RBI MPC) kicked off the year with its inaugural meeting on February 6, 2024. Led by RBI Governor Shaktikanta Das, the six-member committee wrapped up discussions on February 8, 2024, with Governor Das unveiling the committee’s decision at 10 am. In this blog post, we delve into the key takeaways and implications of the RBI MPC’s first meeting of the year.

CPI Inflation Data 2024 (Governor Shaktikanta Das)

Headline inflation dropped from 6.7% in FY23 to 5.5% in April through December 2023. The projected headline CPI inflation rate for FY24 is 5.4%, and the current quarter projection is 4.5% for FY24Q4.

  • The forecasted CPI inflation rate for FY25 is 4.5%.
  • Forecasted CPI inflation for FY25Q1 is 5%.
  • Forecasted CPI inflation for FY25Q2 is 4%.
  • Forecasted CPI inflation for FY25Q3 is 4.6%.
  • Forecast CPI inflation for FY25Q4 is 4.7%

Real GDP Growth Rate of India 2024-24

The RBI predicts 7% real GDP growth in FY25, considering balanced risks.

  • It is predicted that real GDP growth will be 7% in FY25.
  • Estimated for FY24Q1 is 7.2%
  • Forecasted for FY24Q2 is 6.8%.
  • Estimated at 7% for FY24Q3
  • Forecasted for FY24Q4 is 6.9%.

RBI Restricts Paytm Payments Bank:

The deputy governor of the central bank stated that the Reserve Bank of India’s limits on the operations of Paytm Payments Bank were the consequence of the consistent disrespect for the rules.

During a post-policy news briefing, RBI Deputy Governor Swaminathan J stated that the central bank will proceed to take appropriate action as needed.

The action is a “supervisory action on a regulatory entity for persistent non-compliance and comes after long-term dialogue,” according to RBI Governor Shaktikanta Das. We have a responsibility to safeguard the financial system and consumers.”

Das continued, adding that “restrictions are commensurate with the seriousness of the situation, and emphasis is on bilateral engagement with regulated entities.” “All actions are taken with the best interest of customers/depositors and systemic stability in mind.”

RBI Declaration Key Fact Statement Mandate

The disclosure made by the Reserve Bank of India (RBI) regarding the Key Fact Statement (KFS) criteria for loans to small and medium-sized enterprises (MSME) will promote greater transparency in the credit system.

The terms of the loan agreement, including the total cost of the loan, including the interest rate and other related expenses like processing fees and legal fees, will become clearer to borrowers as a result.

Regulations will continue to increase, and banks, NBFCs, and FinTechs will be under more policy pressure to lend to priority sectors in the future.

RBI Monetary Policy Next Date 2024 –

The uncertainty surrounding food prices continues to affect inflation. To give traders access to overseas ETPs offering approved INR products, the RBI will evaluate the regulatory environment for electronic trading platforms. The next meeting of the Monetary Policy Committee is scheduled for April 3, 4, and 5, 2024.

Frequently Ask Questions (FAQs)

Q.1: Who is the Governor of RBI?

Ans: Shaktikanta Das is the 25th governor of the Reserve Bank of India (RBI) at this time and born on February 26, 1957.

Q.2: What is the RBI Monetary Policy Dates in 2024?

Ans: On February 6, 2024, the RBI held its first Monetary Policy Committee (MPC) meeting of the year. The RBI Governor Shaktikanta Das is leading the six members. Das made the announcement at 10:00 AM on Thursday, February 8, 2024.

Q.3: What is the Reverse Repo Rate in India?

Ans: The Reserve Bank of India (RBI) utilizes regulatory measures to manage inflation and maintain liquidity in the event of funding shortfalls.

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