No change in repo rate, GDP projected at 6.5% for FY24

The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) on Thursday unanimously determined to not revise the repo charge, the central financial institution’s Governor Shaktikanta Das introduced.

The MPC determined to maintain the repo charge — the speed at which RBI lends to the banks — at 6.5 per cent making an allowance for the macroeconomic circumstances.

In the identical vein, the RBI Governor added the struggle in opposition to inflation to proceed until the decline in inflation charge is nearer to the goal — 4 per cent.

“We are heading in the right direction to deliver down the inflation charge,” Das stated, including that the MPC is not going to hesitate to take additional motion to battle inflation.

The Indian inflation charge is 6.4 per cent as per February 2023 information.

According to him for FY24 the inflation charge is predicted at 5.2 per cent with Q1 5.1 per cent, Q2 5.4 per cent, Q3 5.4 per cent and This autumn 5.2 per cent.

On the financial development, Das stated the gross home product (GDP) for FY23 was 7 per cent.

For FY24, the GDP development is predicted at 6.5 per cent with Q1 5.1 per cent, Q2 5.4 per cent, Q3 5.4 per cent, This autumn 5.2 per cent.

Das stated the dangers are evenly balanced for each inflation and GDP development projections.

The resolution to maintain the repo charge unchanged has taken the market without warning as majority predicted a hike of 25 bps.

However, it was solely the State Bank of India economists who had predicted that the RBI could not hike the repo charge.

(With inputs from IANS)