DBT Bureau
Bengaluru, 8 August 2024
The Reserve Bank of India on Thursday decided to keep the repurchase rate (repo rate) unchanged at 6.5% for the ninth time in a row.
This decision was taken by the Monetary Policy Committee (MPC) in its bi-monthly meet with a majority of the members voting in favour of the status quo. RBI also sticks to the ‘withdrawal of accommodation’ stance of the monetary policy.
“MPC judged that it is important for monetary policy to stay the course while maintaining close vigil on risks,” RBI Governor, Shaktikanta Das said while announcing the policy decision.
Key Highlights of August RBI MPC Meet
- MPC voted to keep repo rate unchanged at 6.50%. Standing deposit facility (SDF) rate remains unchanged at 6.25%, while the marginal standing facility (MSF) rate and the Bank Rate at 6.75%
- RBI sticks to ‘withdrawal of accommodation’ stance.
- RBI Governor: MPC has decided to focus on inflation and support price stability to ensure growth.
- The real GDP forecast for FY25 was maintained at 7.2%. Q1 GDP growth slightly reduced to 7.2%; Q2 seen at 7.2%; Q3 at 7.3% & Q4 at 7.2%.
- Inflation forecast for FY25 unchanged at 4.5%. It stands at 4.4% for FY26.
- UPI tax payment limit is increased from Rs 1 lakh to Rs 5 lakh per transaction.
- Healthy kharif sowing and improving southwest monsoon are expected to provide some relief.
- Home Loans: Rising disbursals of top-up home loans were noted, with lenders advised to take remedial actions.
- Forex Reserves: India’s forex reserves touched a record high of $675 billion as of August 2.
- Digital Lending Apps: A public repository of digital lending apps is proposed to prevent unauthorized lending.
