1. RBI monetary policy: 5 things to know | RBI policy | RBI policy live updates | RBI policy news

RBI monetary policy: 5 things to know | RBI policy | RBI policy live updates | RBI policy news

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2 min read • Updated: February 8, 2024, 4:59 PM

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📈 Today, on 8th February, the RBI unveiled its latest monetary policy, bringing forth five significant insights regarding your loans, India's inflation and growth trajectory. In this video, we get you 5 big takeaways from RBI’s policy.

💹 Takeaway #1: Key Rate Unchanged For the sixth consecutive time, the RBI has left its key policy rate unchanged at 6.5%. Emphasising its focus on the gradual withdrawal of accommodation, RBI aims to steer inflation towards its 4% target.

📈 Takeaway #2: GDP Growth RBI has raised its GDP growth estimate for FY24 to 7.3% from 7%, projecting a 7% growth for FY25. Positive drivers include robust household consumption, increased private capex, improved business sentiments, healthy bank balance sheets, and government's capex push.

💰 Takeaway #3: Inflation to Moderate Encouraging news on the inflation front as RBI anticipates inflation to ease to 4.5% in FY25, with headline inflation estimated at 5% in FY24. Additionally, core inflation hit a four-year low at 3.8% in December, excluding food and fuel.

🥦 Takeaway #4: Focus on Food Inflation RBI highlights the significance of food inflation in shaping the inflation trajectory. Despite increased rabi sowing, weather conditions remain a crucial factor. Effective supply-side responses are crucial to mitigate food price pressures, although volatile crude oil prices pose a challenge.

💼 Takeaway #5: Managing Liquidity RBI assures swift responses akin to financial market changes, with the transmission of a 250 basis point rate hike still underway.