Repo rate, inflation and GDP: What did RBI’s Monetary Policy Committee say today

The Reserve Bank of India (RBI) announced its decision on key rates following the conclusion of its three-day Monetary Policy Committee (MPC) meeting headed by governor Shaktikanta Das on Thursday.

In the previous MPC meeting held on April 6, the RBI decided to pause its rate hike cycle and maintain the repo rate at 6.5 per cent.

Here are the top announcements by RBI

Monetary Policy Committee, or MPC, decides unanimously to keep repo rate unchanged at 6.5%. MPC to remain focussed on withdrawal of accommodation of policy stance.

Retail inflation projection lowered to 5.1% from earlier estimate of 5.2%. Headline inflation is still above 4% target and is likely to remain so during rest of the year.

Domestic demand condition remains supportive of growth.

Real GDP growth projection for FY23/24 is 6.5%.

Quarterly projection is as follows – Q1 is 8%, Q2 is 6.5%, Q3 is 6% and Q4 is 5.7%.

Net inflow in non-resident deposits at USD 8 billion in FY’23, was USD 3.2 billion last year.

Indian rupee has remained stable since January this year.

Current account deficit expected to moderate further in Q4 and remain eminently manageable. Forex reserves are at comfortable levels.

Pace of global economic activity to decelerate due to geopolitical situation.

MPC will continue to take policy actions promptly and appropriately to keep inflation expectations firmly anchored.