Live updates from the RBI Monetary Policy Committee meeting: Today, October 6, the Reserve Bank of India (RBI) released its fourth bimonthly monetary policy. The Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das, kept rates and stance unchanged as anticipated. The MPC unanimously opted to maintain the policy repo rate at 6.50%. As a result, the bank rate, marginal standing facility, and standing deposit facility (SDF) rates all stay at 6.75%. The MPC also resolved to continue concentrating on the withdrawal of accommodation to make sure that inflation gradually aligns to the target while promoting growth, with a majority of 5 out of 6 members.
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RBI Interest Rates Remain the Same:
Interest rates: The repo rate is still 6.5%.
– The rate for the standing deposit facility (SDF) is at 6.25%.
– The Bank Rate and the Marginal Standing Facility (MSF) Rate remain at 6.75%.
– CRR at 4.5%
The FY24 real GDP growth forecast remains at 6.5%.
– 6.5% is the same as the Q2FY24 GDP projection.
– The Q3FY24 GDP projection remains at 6%.
– 5.7% is the unchanged Q4FY24 GDP prediction.
– Q1FY25 GDP growth is expected to increase by 6.6% from April to June 2024.
The RBI keeps its FY24 CPI inflation projection at 5.4%.
– CPI inflation was projected to increase to 6.4% in Q2FY24 from 6.2%.
– The CPI inflation projection for Q3FY24 was decreased from 5.7% to 5.6%.
– CPI inflation is expected to remain at 5.2% in Q4FY24.
– Q1FY25 CPI inflation projection is unchanged at 5.2% for April to June 2024.
The RBI has decided to increase the monetary ceiling of gold loans that can be granted under the bullet repayment scheme for such UCBs who have met the overall PSL target and sub targets as on March 31, 2023, from 2 lakh to 4 lakh in order to incentivize urban cooperative banks (UCB) that have met the prescribed PSL targets as on March 31, 2023.
Introducing Card-on-File (CoF) token generating tools directly at the issuing bank level was RBI’s suggestion. This action will make it easier for cardholders to create tokens and link them to their active accounts with different e-commerce applications.
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