Mumbai : The Monetary policy committee (MPC) of RBI has decided to keep repo rate unchanged at 6.5%. Subsequently, the Standing Deposit facility rate has remained unchanged at 6.25%. Also Marginal Standing facility rate and Bank Rate has remained unchanged at 6.75%. The Cash Reserve Ration is also unchanged at 4.5%. Increamental CRR will be reviewed on or before September 8,2023, said RBI Governor Shaktikanta Das.
“On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (August 10, 2023) has decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent. The standing deposit facility (SDF) rate remains unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent. The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth. These decisions are in consonance with the objective of achieving the mediumterm target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth” said Das.
“The real GDP growth for 2023-24 is projected at 6.5 per cent with Q1 at 8.0 per cent; Q2 at 6.5 per cent; Q3 at 6.0 per cent; and Q4 at 5.7 per cent, with risks broadly balanced. Real GDP growth for Q1:2024-25 is projected at 6.6 per cent” said the Governor.
“latest CPI inflation projections for 2023-24, assuming a normal monsoon, is revised to 5.4 per cent, with Q2 at 6.2 per cent, Q3 at 5.7 per cent and Q4 at 5.2 per cent. CPI
inflation for Q1:2024-25 is projected at 5.2 per cent. The risks are evenly balanced” he added.