RBI Monetary Policy: GDP growth forecast for FY24 unchanged at 6.5%, says Governor Shaktikanta Das
- In its bi-monthly monetary policy announced on October 6, RBI Governor Shaktikanta Das said the domestic economic activity exhibits resilience on the back of strong domestic demand in contrast to global trends.
The Reserve Bank of India’s (RBI) on Friday kept the GDP growth forecast for FY24 unchanged at 6.5%.
In its bi-monthly monetary policy announced on October 6, RBI Governor Shaktikanta Das said the domestic economic activity exhibits resilience on the back of strong domestic demand in contrast to global trends.
The central bank kept the July-September 2023 (Q2FY24) GDP growth forecast unchanged at 6.5% and that for Q3FY24 at 6.0%.
GDP growth forecast for January-March 2024 (Q4FY24) has also been left unchanged at 5.7%.
For April-June 2024, or Q1FY25, GDP growth estimates has been kept unchanged at 6.6%.
The RBI’s Monetary Policy Committee (MPC) unanimously decided to keep the repo rate unchanged at 6.5% on Friday. The SDF rate remains at 6.25% while the MSF rate and the bank rate remain at 6.75%.
The central bank also retained its policy stance as the “withdrawal of accommodation” with five out of six MPC members voting in favour of this.
RBI Governor emphasised that the fight against inflation is not over yet and the central bank is targeting inflation at 4% and not between 2-6%.
The latest CPI inflation projection for FY24 is 5.4%, with Q2 at 6.4%, Q3 at 5.6% and Q4 at 5.2%. CPI inflation for Q1FY25 is projected at 5.2%.
Global headline inflation could remain high for a longer period than estimated. In contrast to global trends, domestic economic activity exhibits resilience on the back of strong domestic demand, said Governor Das.
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Business NewsEconomyRBI Monetary Policy: GDP growth forecast for FY24 unchanged at 6.5%, says Governor Shaktikanta Das
First Published:6 Oct 2023, 11:08 AM IST
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