Following are the highlights of RBI's bi-monthly monetary policy announced by Governor Shaktikanta Das:
Photograph: ANI Photo
- Benchmark interest rate or repo rate kept unchanged at 6.5%
- GDP growth for 2024-25 projected at 7%, lower than 7.3% this fiscal
- Retail inflation to average 5.4% this fiscal, to come down to 4.5% in 2024-25
- Monetary transmission by financial institutions still remains incomplete
- Current economic momentum to sustain in the next fiscal
- Recovery in rabi sowing, sustained profitability in manufacturing, resilience of services to support economic activity in 2024-25
- Investment cycle gaining steam, signs of revival in private sector capex
- Indian economy making confident progress on strong, sustained growth path
- Rural demand continues to gather pace, urban consumption remains strong
- Govt adhering to fiscal consolidation path; domestic economic activity strong
- Uncertainty in food prices continue to impinge on headline inflation
- Increasing geopolitical tension impacting supply chain, putting pressure on commodity prices
- Forex reserve at USD 622.5 billion; comfortable for meeting foreign obligations
- Domestic financial system remains resilient with a healthy balance sheet
- Regulated entities should accord highest priority to compliance, consumer interest protection
- RBI to introduce an offline functionality in CBDC-Retail for transactions in areas with poor or limited internet connectivity.
- Exchange rate of Indian rupee remained fairly stable in the current fiscal
- Next monetary policy committee (MPC) meeting scheduled during April 3-5, 2024.