RBI keeps repo rate untouched at 6.5%
ECONOMY & POLICY

RBI keeps repo rate untouched at 6.5%

The Governor of the Reserve Bank of India (RBI), Shaktikanta Das, stated that the retail inflation rate is still higher than the MPC's objective of 4%, which is why the MPC opted to maintain the policy repo rate at 6.5%. The choice was made in the midst of worldwide and domestic economic uncertainty. According to the RBI Governor, the MPC made the majority decision to maintain the current repo rate. He conveyed that upon the realisation of the projected GDP growth of 7.2% for 2024?25, it would mark the fourth consecutive year of growth at or above 7%. He noted that the headline CPI has been following a disinflationary trajectory, with monetary policy playing a significant role in this trend. He highlighted a decline in headline inflation by 2.3 percentage points between the first quarter of 2022?23 and the fourth quarter of 2023?24, attributing it to both supply-side developments and government measures. However, he acknowledged that repeated food price shocks had impeded the overall disinflation process. Regarding the rates, he mentioned that the standing deposit facility (SDF) rate remains at 6.25%, with the marginal standing facility (MSF) rate and the bank rate staying at 6.75%. Governor Shaktikanta Das underscored the importance of adopting a balanced approach to monetary policy. He reaffirmed the Monetary Policy Committee's commitment to gradually withdrawing accommodation to ensure inflation aligns with the targeted range. He emphasised that monetary policy must persist in its disinflationary stance and steadfastly work towards aligning inflation with the 4% target on a durable basis to sustain price stability. The RBI revised its growth projections for the current financial year 2024?25, forecasting a GDP growth rate of 7.2 %. The quarterly growth projections stand at 7.3 % for Q1, 7.2 % for Q2, 7.3 % for Q3, and 7.2 % for Q4.
Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

The Governor of the Reserve Bank of India (RBI), Shaktikanta Das, stated that the retail inflation rate is still higher than the MPC's objective of 4%, which is why the MPC opted to maintain the policy repo rate at 6.5%. The choice was made in the midst of worldwide and domestic economic uncertainty. According to the RBI Governor, the MPC made the majority decision to maintain the current repo rate. He conveyed that upon the realisation of the projected GDP growth of 7.2% for 2024?25, it would mark the fourth consecutive year of growth at or above 7%. He noted that the headline CPI has been following a disinflationary trajectory, with monetary policy playing a significant role in this trend. He highlighted a decline in headline inflation by 2.3 percentage points between the first quarter of 2022?23 and the fourth quarter of 2023?24, attributing it to both supply-side developments and government measures. However, he acknowledged that repeated food price shocks had impeded the overall disinflation process. Regarding the rates, he mentioned that the standing deposit facility (SDF) rate remains at 6.25%, with the marginal standing facility (MSF) rate and the bank rate staying at 6.75%. Governor Shaktikanta Das underscored the importance of adopting a balanced approach to monetary policy. He reaffirmed the Monetary Policy Committee's commitment to gradually withdrawing accommodation to ensure inflation aligns with the targeted range. He emphasised that monetary policy must persist in its disinflationary stance and steadfastly work towards aligning inflation with the 4% target on a durable basis to sustain price stability. The RBI revised its growth projections for the current financial year 2024?25, forecasting a GDP growth rate of 7.2 %. The quarterly growth projections stand at 7.3 % for Q1, 7.2 % for Q2, 7.3 % for Q3, and 7.2 % for Q4.

Next Story
Infrastructure Transport

Design Flaw Stalls New Four-Lane Bridge Project in Jamshedpur

The construction of a four-lane bridge between Litti Chowk and NH 33 has been delayed due to design concerns. Current work is limited to bush clearing near Mango, as engineers have identified alignment issues with the bridge. They noted that a portion of the design encroaches into the Subarnarekha River, according to Executive Engineer Deepak Sahay. In response, survey teams are working on revised plans. The state government has allocated Rs 440 million for the bridge's construction, with an additional Rs 330 million earmarked for land acquisition. Tata Steel has contributed 20-30 per cent o..

Next Story
Infrastructure Transport

Govt Proposes Plan for Strategic Paddar-Zanskar Road Construction

The Government has prepared a proposal for the construction of the Paddar-Zanskar road, which will establish an additional connection between Jammu and Ladakh. This project aims to enhance tourism, bolster local economies, and facilitate the movement of troops to the China and Pakistan borders in Ladakh. Officials indicated that the Union Ministry of Road, Transport and Highways is expected to undertake the project after conducting a detailed study of its route. The road’s construction was initially announced by Union Home Minister Amit Shah during a public rally in Paddar in September las..

Next Story
Infrastructure Transport

TN Govt Allocates Rs 8.04 Bllion to Boost 746 Rural Roads

MK Stalin, Chief Minister, Tamil Nadu, unveiled a major initiative aimed at constructing and maintaining an extensive network of roads in rural areas. The State government announced that the project, with an estimated cost of Rs 8.04 billion, is designed to enhance connectivity for Tamil Nadu's rural population, thereby narrowing the divide between urban and rural regions. A government release highlighted that the project involves the construction of 746 roads covering a total distance of 1,452.97 kilometre across 37 districts in the state. It added that the initiative is being financed thro..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000