Picture : ANI / X
The Reserve Bank of India has once again decided to keep policy rate unchanged for the sixth time in a row as it maintains a tight vigil on inflation.
The rate increase cycle was paused in April last year after six consecutive rate hikes aggregating to 250 basis points since May 2022.
Announcing the bi-monthly monetary policy, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5 per cent.
He said MPC will remain watchful of food inflation so that the benefits gained are not frittered away. This is the first bi-monthly policy following presentation of Interim Budget 2024-25 last week. In December, the Consumer Price-based Inflation (CPI) stood at 5.69 per cent.
The government has mandated RBI to ensure CPI inflation at 4 per cent with a margin of 2 per cent on either side.
Meanwhile , The Reserve Bank of India has projected a GDP growth of 7 per cent for 2024-25 financial year, which is lower than the 7.3 per cent expansion estimated for the current fiscal. The growth in December and March quarters is projected at 7 per cent and 6.9, per cent, respectively.
Das said domestic economic activity remains strong and growth in the current fiscal as per estimates by the NSO is 7.3 per cent. The momentum of 2023-24 is expected to continue in 2024-25 fiscal,” Das said.
