RBI keeps repo rate unchanged at 6.5%: Top announcements by Shaktikanta Das

Standing deposit facility (SDF) rate remains at 6.25 per cent, while the marginal standing facility (MSF) rate and the bank rate remain at 6.75 per cent.

Reserve Bank of India (RBI) Governor Shaktikanta Das said that Monetary Policy Committee (MPC) decided to keep the policy repo rate unchanged at 6.5 per cent as retail inflation continues to be above its target of 4 per cent. The decision comes amid economic uncertainties both domestically and globally. The MPC decided to keep the repo rate steady by a majority decision, RBI Governor said.

Reserve Bank of India (RBI) Governor Shaktikanta Das delivers the Monetary Policy Statement, in Mumbai.(PTI)

He said, “When the projected GDP growth of 7.2% for 2024-25 materializes, it will be the fourth consecutive year of growth at or above 7%. Headline CPI continues to be on a disinflationary trajectory. Monetary Policy has played an important role in this process. This is evident from the decline in headline inflation by 2.3 percentage points between the first quarter of 2022-23 and the fourth quarter of 2023-24. Supply-side developments and government measures have also contributed to this moderation of headline inflation. Repeated food price shocks, however, slowed down the overall disinflation process.”

Here are top announcements made by RBI Governor Shaktikanta Das:

1. The standing deposit facility (SDF) rate remains at 6.25 per cent while the marginal standing facility (MSF) rate and the bank rate remain at 6.75 per cent.
2. Governor Shaktikanta Das emphasized the importance of a balanced approach towards monetary policy.
3. He also reiterated MPC's commitment to withdrawing accommodation gradually to ensure that inflation aligns with the targeted range. He said, "Monetary policy must continue to remain disinflationary and be resolute in its commitment to aligning inflation to the target of 4 per cent on a durable basis sustain price stability outset strong foundation.
4. The RBI revised its growth projections for the current financial year 2024-25, forecasting a GDP growth rate of 7.2 per cent.
5. The quarterly growth projections stand at 7.3 per cent for Q1, 7.2 per cent for Q2, 7.3 per cent for Q3, and 7.2 per cent for Q4.