RBI MPC Meet 2024 Highlights: Repo rate unchanged , Real GDP growth at 7.2%

RBI MPC Meet 2024 LIVE: RBI announced integration of UPI Lite with the e-mandate framework, facilitating the auto-replenishment of UPI Lite balances.

RBI MPC Meet 2024 LIVE: Home loan interest rates and equated monthly installments (EMIs) will remain unchanged for borrowers as the Reserve Bank of India (RBI) held repo rate steady at 6.5 per cent for the eighth time in a row.

RBI MPC Meet 2024 LIVE: RBI proposes to rationalise Foreign Exchange Management Act guidelines related to export-import of goods and services, Governor Shaktikanta Das said.

RBI MPC Meet 2024 LIVE: RBI Governor said announced the following as well:

1. Rationalisation of guidelines for export and import of goods and services under FEMA
2. Next edition of Harbinger 2024 - the global hackathon - with two themes, zero frauds and being divyang friendly will be launched soon
3. To introduce auto replenishment of UPI-Lite wallet

RBI MPC Meet 2024 LIVE: RBI Governor Shaktikanta Das announced a significant surge in Foreign Portfolio Investor (FPI) flows during FY24 with an inflow totaling $41.6 billion.

RBI Governor said, "The outlook on crude oil prices remains uncertain due to geopolitical tensions. Assuming a normal monsoon, CPI inflation for 2024-25 is projected at 4.5% with Q1 at 4.9%, Q2 at 3.8%, Q3 at 4.6% and Q4 at 4.5%, the risks are evenly balanced. The GDP growth projection, we have increased it from 7% to 7.2% and the inflation projection, the average for the year, we have retained it at 4.5% as it was in the last MPC meeting. I have explained there are good reasons why we have increased the GDP projection for the current year."

RBI MPC Meet 2024 LIVE: RBI Governor said, “It has been observed that in some MFIs and NBFCs, interest rates on small value loans are high and appear to be usurious.”

RBI MPC Meet 2024 LIVE: Forex at a historical high of USD 651.5 billion as of May 31

RBI MPC Meet 2024 LIVE: Customer protection remains top of RBI's priority, the RBI Governor said, asserting that prudent balance between asset and liabilities must be maintained.

RBI MPC Meet 2024 LIVE: RBI Governor said that the banking system is sound and resilient backed by asset quality as it sees rise in profitability. NBFCs displayed strong financials in FY24, he said. Recent data suggests there is moderation in loans and advances in unsecured lending after RBI flagged it last year, he added.

Boman Irani, President, CREDAI, said, “India’s robust economy continued its upward trajectory in Q4 FY 23/24 by clocking 7.8% growth, the momentum of which can also be largely put down to the strong sales volumes and infusion of supply in the Housing sector in the past few quarters. Coupled with other healthy macro-economic indicators and CPI at an 11-month low at 4.83% recorded in last April, RBI possesses a strong opportunity to provide a sustained, formidable platform to further elevate this holistic economic development across industries. Despite today’s move to maintain the repo rate at 6.5%, RBI should look towards consolidating the ongoing GDP growth in the upcoming MPC meets by cutting the repo rates for the first time since February 2023, and offer lower lending rates that would boost consumer spending even more.”

RBI MPC Meet 2024 LIVE: Will be nimble and flexible through main and fine-tuning operations, RBI Governor Shaktikanta Das says

RBI MPC Meet 2024 LIVE: The RBI governor said that vegetable prices are currently on the rise for the summer season attributing the deflationary trend in fuel prices mainly to cuts in LPG prices.

RBI MPC Meet 2024 LIVE: Sensex jumps 600 points as RBI raises FY25 GDP growth forecast

RBI MPC Meet 2024 LIVE: RBI Governor Shaktikanta Das said, "The inflation growth balance is moving favourably. Growth is holding firm. Inflation continues to moderate, mainly driven by the core component, which reached its lowest level in the current series In April 2024. The deflation in fuel prices is ongoing. Food inflation, however, remains elevated. While the MPC took note of the disinflation achieved so far without hurting growth, it remains vigilant to any upside risks to inflation, particularly from food inflation, which could possibly derail the path of disinflation. Hence, monetary policy must continue to remain disinflationary and be resolute in its commitment to aligning inflation to the target of 4% on a durable basis. Sustained price stability would set strong foundations for a period of high growth. Accordingly, the MPC decided to keep the policy repo rate unchanged at 6.5% in this meeting of the MPC. The MPC also decided to remain focused on withdrawal of accommodation to ensure anchoring of inflation expectations and fuller policy transmission."

RBI governor said that inflation projection has been retained for the fiscal as it was in last MPC. RBI projects CPI inflation at 4.5% for FY25 and CPI inflation is expected to be Q1- 4.9%, Q2 -3.8%, Q3 - 4.6%, Q4 - 4.5%.

RBI MPC Meet 2024 LIVE: Shaktikanta Das said that a forecast of above-normal southwest monsoon by IMD is expected to boost Kharif production.

RBI MPC Meet 2024 LIVE: RBI governor said that private consumption is recovering and revival in rural demand is getting fillip from farm activities. Non-oil, non-gold imports are in the positive while services growth rebounding.

IMD's forecast is expected to improve Kharif output, he said.

RBI MPC Meet 2024 LIVE: Shaktikanta Das said that global growth is sustaining in 2024 and is likely to remain resilient. Market expectation on timing and pace of rate cut is changing based on incoming data, he said, adding that domestic economic activity in FY25 has remained resilient.

RBI MPC Meet 2024 LIVE: RBI Governor Shaktikanta Das said, "The Monetary Policy Committee decided by a 4:2 majority to keep the policy repo rate unchanged at 6.5%. Consequently, the standing deposit facility (SDF) rate remains at 6.25%, and the marginal standing facility (MSF) rate and the bank rate at 6.75%."

RBI MPC Meet 2024 LIVE: RBI Governor Shaktikanta Das said that food inflation remains elevated as deflation in fuel prices is ongoing.

RBI MPC Meet 2024 LIVE: Here are top updates so far:

1. MPC decides to keep key rates unchanged by a 4:2 majority
2. RBI keeps repo rate unchanged at 6.50%
3. Majority MPC focused on withdrawal of accommodation, Shaktikanta Das says
4. Explaining the decisions, he said that deflation in fuel prices ongoing, MPC took note of this but remains vigilant to any upside risk

RBI MPC Meet 2024 LIVE: RBI maintains status quo as it keeps interest rates unchanged at 6.5%. The repo rate is the interest rate at which RBI provides loans to commercial banks when there is a shortage of funds.

RBI MPC Meet 2024 LIVE: Shaktikanta Das said, “The pattern of world crisis continues, but India is seeing positive growth. But we need to stay vigilant against new challenges.”

RBI MPC Meet 2024 LIVE: Emphasis will also be placed on Shaktikanta Das' comments on budget and the fiscal policies of the new government.