RBI MPC announcement: Central bank keeps repo rate constant, other key takeaways

The Reserve Bank of India (RBI) governor Shaktikanta Das said that the central bank’s monetary policy committee unanimously decided to keep the policy rate unchanged at 6.50 per cent. He added that the central bank has decided to maintain its “withdrawal of accommodation” stance. Repo rate refers to the rate at which the central bank lends money to commercial banks or financial institutions against government securities. The central bank also kept the standing deposit facility (SDF) rate, marginal standing facility (MSF) and bank rates unchanged at 6.25 per cent and 6.75 per cent respectively.

Key highlights from the Reserve Bank of India’s (RBI) MPC announcements

1. Reserve Bank of India (RBI) kept the repo rate unchanged at 6.50 per cent in its latest MPC meeting. The decision was taken unanimously by the committee.

2. The central bank has projected inflation to drop to 5.2 per cent for FY24. It projected inflation for Q1FY24, Q2FY24, Q3FY24, and Q4FY24 at 5.1 per cent, 5.4 per cent, 5.4 per cent, and 5.2 per cent, respectively.

3. RBI Governor Shaktikanta Das said that the MPC projected GDP growth for 2022-23 at 7 per cent and 6.5 per cent for 2023-24, respectively.

4. The RBI boss projected GDP growth for Q1 at 7.8 per cent, Q2 at 6.2 per cent, Q3 at 6 per cent, and Q4 at 5.8 per cent.

5. India’s foreign exchange reserves stood at $578.4 billion as of March 31, 2023.

6. While passenger vehicle sales logged strong growth in February, the consumer durables sector contracted in January among urban demand indicators.

7. Among rural demand indicators, tractors and two-wheeler sales were robust, the Governor said in his statement.

8. Customers will be able to check unclaimed money lying with banks using a common portal of banks. This portal will help customers check such amounts across all banks in one click.

9. The central bank will also allow operations of pre-sanctioned credit lines with banks to expand the scope of UPI, Governor Das noted.

10. Sensex has jumped over 200 points and Nifty has topped the 17,600 level after the RBI decided to hold the repo rate at 6.50 per cent.

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