RBI Keeps Repo Rate Unchanged at 6.5% in First MPC Meeting of FY25

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Monetary Policy Statement by Shri Shaktikanta Das, RBI Governor- April 05, 2024
Monetary Policy 2024-25 ,Shaktikanta Das, RBI Governor

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New Delhi : The Reserve Bank of India (RBI) Governor Shaktikanta Das has today announced the decision of the Monetary Policy Committee (MPC) on key interest rates. RBI MPC has not made any change in the repo rate. It has been retained at 6.5%. Reserve Bank of India (RBI) Governor Shaktikanta Das has today announced the decision of the Monetary Policy Committee (MPC) on key interest rates. RBI MPC has not made any change in the interest rates i.e. repo rate. It has been kept unchanged at 6.5%.

RBI Governor said that GDP growth is estimated to be 7% in FY 25. RBI Governor said that demand in rural areas is strengthening. Private consumption is also expected to increase. He said that the GDP growth estimate for the second quarter of the financial year 2024-25 has been increased from 6.8% to 6.9%.

Monetary Policy Statement by Shri Shaktikanta Das, RBI Governor- April 05, 2024

What is RBI’s estimate on GDP growth?
GDP growth expected to decline from 7.2% to 7.1% in first quarter of FY25
GDP growth estimate for second quarter of FY25 increased from 6.8% to 6.9%
GDP growth estimate for Q3FY25 retained at 7%
GDP growth estimate for Q4FY25 raised to 7% from 6.9%
What did the RBI Governor predict on inflation?
FY25 CPI i.e. retail inflation estimate remains at 4.5%
CPI estimate for Q4FY25 cut to 4.5% from 4.7%
Q1FY25 CPI estimate cut from 5% to 4.9%
CPI estimate for Q2FY25 cut to 3.8% from 4%

This is the first RBI MPC announcement in the financial year 2024-25 (FY25). The central bank had kept the repo rate unchanged in the last six consecutive MPC meetings. Even in the seventh meeting, the repo rate has been kept at 6.5 percent only. The three-day meeting of the RBI MPC began on April 3.

The RBI Governor said that there is a possibility of inflation increasing due to uncertainty in food prices. RBI remains alert on the rise in inflation rate. MSF rate has been maintained at 6.75%. RBI Governor Shaktikanta Das said that five out of six MPC members were in favor of keeping the repo rate unchanged.

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