RBI Monetary Policy | Repo rate will not change, GDP growth rate is expected to be 6.5 percent, announced RBI Governor Shaktikanta Das
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The RBI said retail inflation was set to ease in March-April 2023 from 6.7 per cent in the previous fiscal. However, headline inflation remains high and is estimated at 5.1 per cent for the current fiscal.
RBI Governor Shaktikanta Das on Thursday said that the Monetary Policy Committee has unanimously decided to keep the benchmark repo rate unchanged at 6.5 per cent. Das said that with no change in the repo rate, the standing deposit facility (SDF rate) remains unchanged at 6.25 per cent and the marginal standing facility and bank rate at 6.75 per cent.
The RBI said retail inflation was set to ease in March-April 2023 from 6.7 per cent in the previous fiscal. However, headline inflation remains high and is estimated at 5.1 per cent for the current fiscal. The RBI governor said, as per our assessment, inflation will remain above 4 per cent during 2023-24. “The MPC also decided, by a majority of five out of six members, to focus on a return to accommodation to ensure that inflation progressively aligns with the target while supporting growth.
Reserve Bank Governor Shaktikanta Das said Despite global uncertainties, the Indian economy and financial sector remain strong and resilient. The Monetary Policy Committee kept the key policy rate repo unchanged at 6.5 per cent. The Monetary Policy Committee will focus on withdrawal of the accommodative policy stance.
Governor Das Vane further said that It is very important to keep a constant and close watch on the inflation situation. Core inflation above the target of 4 per cent. Estimated to be above target for the full year. They said that In the current financial year 2023-24, the GDP growth rate is estimated to be 6.5 percent.
The RBI expects the GDP growth rate to be eight per cent in the first quarter of the current financial year, 6.5 per cent in the second quarter, six per cent in the third quarter and 5.7 per cent in the fourth quarter of the current financial year. RBI reduced the retail inflation forecast to 5.1 per cent from 5.2 per cent during the financial year 2023-24. Domestic demand conditions remain supportive of growth, rural demand turning up
RBI Governor said that The current account deficit will come down further in the fourth quarter. The Indian Rupee has been stable since January this year.
In India, Consumer Price Inflation eased during March-April 2023 and moved into the tolerance band, declining from 6.7% in 2022-23. Headline inflation, however, is still above the target as per the latest data and is expected to remain so according to our projections for 2023-24.… pic.twitter.com/P4lpuz8AWa
— ANI (@ANI) June 8, 2023
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