"The elephant in the house (inflation) seems to be out for a walk. We want it to stay in the wild," RBI Governor Shaktikanta Das said.
Mumbai : The repo rate was announced on Friday by the Monetary Policy Committee of the Reserve Bank of India (RBI). The central bank kept the repo rate unchanged for the seventh consecutive time. Currently, the repo rate is kept at 6.5 percent. The Reserve Bank's GDP growth estimate for 2024-25 has been pegged at 7 percent. The country's retail inflation rate for 2024-25 is estimated at 4.5 percent.
Also, the central bank's Monetary Policy Committee has kept the SDF or Standing Deposit Facility unchanged, standing at 6.25 percent. Meanwhile, the MSF and bank rate stand at 6.75 percent. Note that SDF is the lower band of interest rates. Meanwhile, MSF or Marginal Standing Facility is the upper band.
According to a news agency, five out of six members of the Monetary Policy Committee voted to keep the repo rate unchanged. It was the first meeting of the 2024-25 financial year. RBI Governor Shaktikanta Das said the Reserve Bank is alert to the risk of food inflation. Note that the Reserve Bank of India has increased the repo rate several times since May 2022. A total of six rate hikes, totaling 250 basis points, were made.
RBI halted the rate hike cycle in April last year. It reached 6.5 percent after the last repo rate hike in February 2023. Retail Inflation (CPI) was 5.1 percent in February this year. In this regard, the RBI Governor said, "Moderate inflationary pressures, resilience of production pace will require increased private investment in the services sector. Global growth remains stable. The recent rise in crude oil prices needs to be monitored." He added, "The elephant in the house (inflation) seems to be out for a walk. We want it to stay in the wild."
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Mumbai : The repo rate was announced on Friday by the Monetary Policy Committee of the Reserve Bank of India (RBI). The central bank kept the repo rate unchanged for the seventh consecutive time. Currently, the repo rate is kept at 6.5 percent. The Reserve Bank's GDP growth estimate for 2024-25 has been pegged at 7 percent. The country's retail inflation rate for 2024-25 is estimated at 4.5 percent.
Also, the central bank's Monetary Policy Committee has kept the SDF or Standing Deposit Facility unchanged, standing at 6.25 percent. Meanwhile, the MSF and bank rate stand at 6.75 percent. Note that SDF is the lower band of interest rates. Meanwhile, MSF or Marginal Standing Facility is the upper band.
According to a news agency, five out of six members of the Monetary Policy Committee voted to keep the repo rate unchanged. It was the first meeting of the 2024-25 financial year. RBI Governor Shaktikanta Das said the Reserve Bank is alert to the risk of food inflation. Note that the Reserve Bank of India has increased the repo rate several times since May 2022. A total of six rate hikes, totaling 250 basis points, were made.
RBI halted the rate hike cycle in April last year. It reached 6.5 percent after the last repo rate hike in February 2023. Retail Inflation (CPI) was 5.1 percent in February this year. In this regard, the RBI Governor said, "Moderate inflationary pressures, resilience of production pace will require increased private investment in the services sector. Global growth remains stable. The recent rise in crude oil prices needs to be monitored." He added, "The elephant in the house (inflation) seems to be out for a walk. We want it to stay in the wild."
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