The RBI’s Monetary Policy Committee met for the third time in FY 2024-25, from August 6 to 8. On Thursday, August 8, the RBI announced its much-awaited interest rate decision.
Inputs from PTI
The repo rate was retained at 6.5% for the ninth consecutive time. The repo rate is the rate at which the RBI gives short-term loans to the commercial banks.
The RBI announced that it will remain focused on withdrawing monetary policy accommodations to check inflation and support growth.
The retail inflation forecast was retained at 4.5% for the financial year 2024-25, and the inflation for the first quarter of the next fiscal year was pegged at 4.4%.
The GDP growth forecast for India for the financial year 2024-25 was retained at 7.2%.
The global economic outlook remains resilient although with some moderation in pace, while the domestic activity continues to sustain its momentum, the RBI said.
While India’s current account deficit was manageable, its forex reserves rose to a historic high of $675 billion on August 2.
The Indian financial system remains resilient and is gaining strength, the RBI added.
The RBI governor announced that the Indian rupee has remained largely range-bound in FY 2024-25 so far.
The next MPC meeting will be held from October 7 to 9.
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