RBI Maintains Steadfast Approach: Repo Rate Held Firm at 6.5%

 

The important stuff from the RBI Monetary Policy announcement for you. So, the RBI Governor, Shaktikanta Das, shared some key points with us.

First off, all 6 members of the RBI MPC agreed to keep the repo rate the same at 6.5%. This is the fourth time in a row that they've decided to keep it unchanged. Just to give you some background, the repo rate was last increased from 6.25% to 6.50% in February 2023.

The RBI's main focus right now is to support growth and control inflation. They've been gradually increasing the repo rate by 250 basis points, which is a fancy way of saying 2.5%. This increase is still making its way through the economy.

The RBI predicts that the real GDP growth for the fiscal year 2024 will be around 6.5%. They also expect the inflation rate to be around 5.4% for the same period. To help control inflation, they're taking steps like reducing vegetable prices and cutting rates for LPG.

The RBI sees high inflation as a big risk to the overall stability and sustainable growth of the economy. However, they believe that India has the potential to become a major player in the global economy.

Now, let's talk about some other important things. The limit for gold loans under the Bullet Repayment Scheme for UCBs has been doubled to ₹4 lakh. And the Payments Infrastructure Development Fund scheme has been extended by 2 years until December 2025. It will now include beneficiaries of the PM Vishwakarma scheme.

The RBI also plans to manage liquidity by conducting open market operations (OMO) through auctions for government securities (G-secs). This is just a way for them to keep things in balance.

Lastly, the RBI will introduce a new feature called card-on-file tokenization. This will make it more convenient for cardholders when making payments.

Oh, and mark your calendars! The next Monetary Policy Committee meeting is scheduled for December 6-8, 2023.

#rbi

#bank

#monetary

#policy

#governor

#keypoints

#repo

#growth

#reporate

#economy

#india

#gdp

#vegetable

#lpg

#global

#goldloan

#repayment

#scheme

#pm

#market

#auction

#government

#securities