RBI monetary policy: Shaktikanta Das-led MPC keeps repo rate steady at 6.50%. Predicts 6.5% GDP growth in FY24

  • RBI policy meeting: Governor Shaktikanta Das led monetary policy committee

Asit Manohar
Updated10 Aug 2023, 10:53 AM IST
In previous RBI monetary policy meeting held from 3rd to 6th April 2023, Shaktikanta Das led monetary policy committee kept repo rates unchanged at 6.50 per cent.
In previous RBI monetary policy meeting held from 3rd to 6th April 2023, Shaktikanta Das led monetary policy committee kept repo rates unchanged at 6.50 per cent.(Bloomberg)

RBI monetary policy meeting: In a bid to keep the uptrend in micro and macro economic growth in India, Shaktikanta Das led monetary policy committee (MPC) unanimously decided to keep the repo rate unchanged at 6.50 per cent for third straight meeting in a row. The RBI governor also re-iterated that the MPC has maintained its ‘accommodative’ stance on the interest rate hike.

Announcing about the RBI policy committee meeting outcome, RBI Governor Shaktikanta Das said, “The monetary policy committee unanimously decided to keep the repo rate unchanged at 6.50 per cent.”

The RBI Governor went on to add that Indian economy is 5th largest economy in the world and India's contribution in global growth is to the tune of 15 per cent. He said that amid challenges in global economy, India has managed to keep inflation under control. He said that Indian banks are sitting at handsome cash reserves hinting smooth credit line availability for the various infrastructure projects (both under pipeline and that are underway). 

RBI's prediction on GDP growth in FY24

RBI Governor Shaktikanta Das went on to add that India's inflation at 6. 4 per cent in Q1FY24 is in line with the RBI's expectations. However, he predicted correction in vegetable prices in next few months. He said that overall inflation in the financial year 2023-24 is expected to remain at 6.5 per cent.

Click here to read: Stock market experts suggest ‘buy on dips’ strategy in these sectors

CPI inflation in FY24

The RBI Governor said that challenges from the high interest regime in global economy is expected to keep putting pressure on India's growth theme and said that consumer price index (CPI) to remain at 5.40 per cent in FY24, which stood at 5.1 per cent in FY23. So, retail inflation in FY24 is expected at 5.4 per cent against 5.1 per cent in FY23.

Speaking on RBI policy meeting outcome, Pratapsingh Nathani, Chairman & MD at Beacon Trusteeship said, “In its monthly policy statement, RBI continued to maintain its old stance of maintaining the repo rate at 6.50% however being watchful on inflation target of 4% & over the sudden spurt in agricultural prices (onion tomato cereal & pulses). CPI Inflation has moderated by 100 bps from January 2023 so there is a feeling that there may be some spike in inflation due to agri prices but will correct within the next couple of months. While the Indian economy is shows signs of robustness, RBI will continue to use instruments available to them in controlling inflation on an ongoing basis.”

The RBI monetary policy committee (MPC) announced the first bi-monthly policy for FY24 on April 6.  The MPC, led by RBI Governor Shaktikanta Das, met on April 3, 5 and 6 to review the current monetary policy. In this RBI MPC meeting, experts were expecting 25 bps interest rate hike to 6.75 per cent. But, RBI MPC thought otherwise and kept repo rate unchanged a 6.50 per cent. Later on in June 2023 MPC meeting too, the RBI MPC had decided to keep the repo rate steady at 6.50 per cent.

Catch all the Business News , Economy news , Breaking News Events andLatest News Updates on Live Mint. Download TheMint News App to get Daily Market Updates.

MoreLess
First Published:10 Aug 2023, 10:53 AM IST
Business NewsEconomyRBI monetary policy: Shaktikanta Das-led MPC keeps repo rate steady at 6.50%. Predicts 6.5% GDP growth in FY24

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    139.25
    03:59 PM | 13 NOV 2024
    -4.9 (-3.4%)

    Bharat Electronics share price

    281.45
    03:50 PM | 13 NOV 2024
    -8.8 (-3.03%)

    Tata Power share price

    399.05
    03:59 PM | 13 NOV 2024
    -15.2 (-3.67%)

    Tata Motors share price

    786.40
    03:59 PM | 13 NOV 2024
    1.45 (0.18%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Suzlon Energy share price

    54.08
    03:59 PM | 13 NOV 2024
    -5.31 (-8.94%)

    Rattanindia Enterprises share price

    62.59
    03:58 PM | 13 NOV 2024
    -5.36 (-7.89%)

    Gujarat Narmada Valley Fertilisers & Chemicals share price

    545.95
    03:44 PM | 13 NOV 2024
    -43.85 (-7.43%)

    Motilal Oswal Financial Services share price

    898.15
    03:58 PM | 13 NOV 2024
    -70.5 (-7.28%)
    More from Top Losers

    KNR Constructions share price

    307.80
    03:58 PM | 13 NOV 2024
    23.65 (8.32%)

    Suven Pharmaceuticals share price

    1,259.00
    03:29 PM | 13 NOV 2024
    55.25 (4.59%)

    Piramal Pharma share price

    259.70
    03:52 PM | 13 NOV 2024
    9.15 (3.65%)

    Medplus Health Services share price

    699.50
    03:29 PM | 13 NOV 2024
    23.85 (3.53%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      76,865.000.00
      Chennai
      76,871.000.00
      Delhi
      77,023.000.00
      Kolkata
      76,875.000.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      103.02/L0.00
      Chennai
      100.90/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in Economy

        HomeMarketsPremiumInstant LoanMint Shorts