The RBI decides against raising rates and increases its growth forecast for FY24. The key repo rate was unexpectedly raised, so the Monetary Policy Committee of the RBI decided to pause it. As a result, it is now still 6.5 percent. and all other policy rates remained the same.
-compressed.jpg)
1. The RBI on Thursday decided to maintain the current repo rate because inflation has remained stubborn. The repo rate has already gone up by a total of 250 basis points (bps) since May 2022 due to central bank action.
2. According to Governor Shaktikanta Das, 5.2% inflation is expected in FY 2023–2024. "Overall inflation is higher than expected, but the current policy rate is still supportive
3. The RBI slightly increases its estimate of GDP growth for FY24 from its previous estimate of 6.4% to 6.5%.
4. According to Governor Das, the RBI will continue to concentrate on the removal of monetary policy accommodations.
5. Policy decisions made after May 2022 are still being implemented. He claimed that the banking and non-banking financial systems are still strong.
6. Das stated during the meeting that the RBI would create a centralized portal to search across various banks for unclaimed deposits.
Governor Shaktikanta Das stated that the repo rate hike and accommodation withdrawal have been put on hold only for this meeting. The GDP increased by 7% in 2022–2023, indicating that the economy was robust.
1. Repo rate remains unchanged at 6.50%
2. Real GDP is anticipated to have grown by 7% in 2022–2023.
3. The projected real GDP growth for 2023–2024 is 6.5%.
4. Estimated GDP growth for the first, second, third, and fourth quarters is 7.8%, 6.2%, 6.1%, and 5.9%, respectively.
5. 5.2% CPI inflation is predicted to occur in 2023–2024.
6. The CPI is expected to increase by 5.1%, 5.4%, 5.4%, and 5.2%, respectively, in the first quarter, the second, the third quarter, and the fourth quarter.
"The RBI's announcement was a prudent one as the governor kept the repo rate unchanged at 6.5%, bringing the total increase since May 2022 to 250 basis points, including six hikes," said Cyrus Mody, founder and managing partner of Viceroy Properties. Although the economy is showing signs of growth, the central bank wants to control inflation. Going forward, it is anticipated that the RBI will pause rates at this level and begin easing rates in CY25. The goal of the central bank is to balance the growth rate and inflation. We anticipate that a regular monsoon year will contribute to lower inflation and lower interest rates. As numerous transit infrastructure projects reach completion and are put into service over the course of the following 12 to 18 months, MMR will continue to experience strong demand. Also, due to their high quality and prompt delivery, projects created by reputable names will continue to be in demand.
Uday Kotak, the CEO of Kotak Mahindra Bank, supported the Reserve Bank of India (RBI) in its recently concluded monetary policy committee (MPC) meeting for maintaining the repo rate constant. Kotak stated in a recent tweet that the RBI paused rate hikes without abandoning its accommodative stance at a time when central banks around the world are worried about the global banking crisis and focusing on rate hikes. Uday Kotak tweeted: "Financial stability is the main goal of monetary policy." pause in the rate without shifting posture. In this viral digital world, every central bank is concerned about the fragility of global banking. While the Indian economy is doing well, let's "be not slack and be diligent" instead!"
After six straight increases, the Reserve Bank of India (RBI) decided to hold the repo rate steady at 6.50 percent, which helped the BSE Sensex and NSE Nifty. The Nifty moved 61 points, or 0.35 percent, to 17,618 while the Sensex increased 226 points, or 0.38 percent, to 59,915 overall.
In summary, the Reserve Bank of India (RBI) has decided to maintain the current repo rate due to the persistence of high inflation. Despite this, the central bank slightly increased its estimate of GDP growth for FY24. The RBI remains focused on removing monetary policy accommodations, and policy decisions made after May 2022 are still being implemented. The banking and non-banking financial systems are strong, according to Governor Shaktikanta Das. Additionally, the RBI plans to create a centralized portal to search for unclaimed deposits across various banks. Overall, the RBI's decision suggests a cautious approach towards managing inflation while continuing to support economic growth in the country.
How to activate or enable e-invoicing
