Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday gave the Monetary Policy Statement (MPC). RBI held its 51st Monetary Policy Committee (MPC) meeting on 7, 8 and 9 October.
RBI Governor Das, while releasing the MPC statement quoted Mahatma Gandhi. Das said, “In the prevailing macroeconomic conditions and the outlook, Mahatma Gandhi’s words remain highly relevant- When the method is good, Success is bound to come in the end.”
RBI Governor In MPC Statement
This was the first RBI MPC meeting after three new external members appointed by the government on the panel last week. The major decision of the MPC was to keep the Repo Rate unchanged at 6.5%. This is the tenth straight time when the key rate has been kept unchanged.
RBI Governor In MPC Statement
This was the first RBI MPC meeting after three new external members appointed by the government on the panel last week. The major decision of the MPC was to keep the Repo Rate unchanged at 6.5%. This is the tenth straight time when the key rate has been kept unchanged.
The standing deposit facility (SDF) rate remains at 6.25%. Marginal standing facility (MSF) rate and the Bank Rate were kept unchanged at 6.75% by RBI. The central bank has changed its monetary policy stance of ‘withdrawal of accommodation’ to ‘neutral’. In MPC meeting the RBI projected real GDP to grow at 7.2% rate in FY 2024-25. Consumer Price Index aka Retail inflation for FY 2024-25 is projected at 4.5%.
RBI has also increased the per-transaction limit in UPI 123Pay from Rs 5,000 to Rs 10,000. RBI Governor also announced an increase in the UPI Lite wallet limit from Rs 2,000 to Rs 5,000. UPI Lite per-transaction limit is also increased from Rs 500 to Rs 1,000.
However, share market reacted adversely to MPC decisions. The 30 Sensex firms trades 167.71 points low to settle down at 81,467.10 points, whereas Nifty tumbled 31.20 points to settle down at 24,981.95 levels on Wednesday.
“India’s growth story remains intact. Inflation is on a declining path, although we still have a distance to cover. The external sector demonstrates the strength of the economy,” said Das in MPC statement.
