RBI MPC 2024: Central bank retains repo rate, projects 7% GDP growth
By Vivek Dubey
By Vivek Dubey
The benchmark interest rate, also known as the repo rate, remains unchanged at 6.5%.
The GDP growth for the fiscal year 2024-25 is maintained at 7%, which is lower than the 7.6% of the last fiscal year.
The average retail inflation for this fiscal year is projected to be 4.5%, lower than the 5.4% in FY24.
Uncertainties in food prices will continue to influence the inflation outlook.
With the increase in rural demand, consumption is expected to support economic growth in FY25.
The outlook for agriculture and rural activities is positive, with a good rabi wheat crop and improved prospects for kharif crops due to the expected normal monsoon.
Strong rural demand, moderating inflationary pressures, and sustained momentum in the manufacturing and services sector are expected to boost private consumption.
However, protracted geopolitical tensions and increasing disruptions in trade routes pose risks to the outlook.
The strong growth momentum, along with GDP projections for 2024-25, provides RBI with the policy space to focus on price stability.
Cash deposits in banks through UPI will be allowed.
The net inflows by FPIs stood at $41.6 billion during 2023-24, marking the second-highest level of FPI inflow after 2014-15.
India continues to be the world’s largest recipient of remittances.
The Current Account Deficit in 2024-25 is expected to remain at a level that is both viable and manageable.
The Indian rupee remained largely stable compared to its emerging market peers as well as a few advanced economies during 2023-24.
The Indian Rupee was the most stable among major currencies in FY24.
The next monetary policy committee (MPC) meeting is scheduled for June 5 to 7, 2024.