Updated February 8th, 2024 at 11:31 IST
Repo rate unchanged, 7% GDP growth: Key announcements by RBI Governor Shaktikanta Das
The Governor, who was making the monetary policy announcement, also said that the policy repo rate will be maintained at 6.5% for the sixth consecutive time.
RBI GDP projection: India's Gross Domestic Product (GDP) growth rate for 2024-25 is projected at 7 per cent, Reserve Bank of India (RBI) Governor Shaktikanta Das announced Thursday, February 8, 2024. The Governor, who was making the monetary policy announcement, also said that the policy repo rate will be maintained at 6.5 per cent for the sixth consecutive time. Das announced the RBI Monetary Policy Commitee's decision on Thursday, February 8, after a three-day review meeting.
Key announcements by RBI Governor Shaktikanta Das
Maintenance of repo rate: The RBI has decided to keep the policy repo rate unchanged at 6.5 per cent for the sixth consecutive time. This decision reflects the central bank's commitment to stability in monetary policy.
GDP growth projection: Governor Das announced the GDP growth projection for the fiscal year 2024-25 at 7 per cent, indicating evenly balanced risks. Additionally, he provided quarterly GDP growth projections, reflecting an upward revision from previous estimates.
Inflation and growth dynamics: Governor Das cited comfortable inflation levels and robust growth dynamics as the primary reasons behind maintaining the status quo in the policy stance. He highlighted that inflation is gradually approaching the target while growth remains resilient.
Monetary Policy Committee's decision: The Monetary Policy Committee, with a majority vote of 5 out of 6 members, opted to maintain focus on withdrawing accommodation to ensure progressive alignment of inflation with the target, while simultaneously supporting growth.
Global economic outlook: Das forecasted steady global growth in 2024 with variations across regions. He highlighted the difference in public debt levels between developed and emerging economies, indicating India's expected moderation in debt in the coming years.
Economic resilience: India's economy demonstrated resilience by growing at 7.6 per cent during the July-September quarter of the fiscal year 2023-24, maintaining its position as the fastest-growing major economy. This underscores confidence in India's economic trajectory.
Continued monitoring: The RBI Governor's announcements came amid a three-day bi-monthly monetary policy committee meeting aimed at deliberating various economic indicators. The decision to maintain the repo rate reflects the central bank's proactive stance in managing inflationary pressures while supporting economic growth.
Published February 8th, 2024 at 11:00 IST