Discover the latest updates from the Reserve Bank of India (RBI) as it maintains its benchmark interest rate at 6.5% during its recent policy announcement.

Get insights into the Monetary Policy Committee's decision, growth projections, and inflation forecasts for the financial year 2023-24 and beyond.

Reserve Bank of India (RBI) has opted to keep its benchmark interest rate, the repo rate, steady at 6.5% during its sixth bi-monthly policy announcement for the financial year 2023–24.

This decision marks the sixth consecutive time that the RBI has maintained the repo rate at this level, reflecting the central bank's commitment to its monetary stance.

The RBI, under the leadership of Governor Shaktikanta Das, has kept the repo rate, standing deposit facility rate, and marginal standing facility rate unchanged at 6.5%, 6.25%, and 6.75%, respectively.

The Monetary Policy Committee (MPC) emphasizes the importance of focusing on the ‘Withdrawal of Accommodation’ to align inflation progressively with the target while supporting economic growth.

– Projections indicate a 7% real GDP growth for the financial year 2024–25, with an upward revision from the previous estimate of 6.6%. Growth forecasts for each quarter are outlined to provide a comprehensive view of the economic trajectory.

The second quarter of fiscal year 2023-24 (Q2FY24) saw GDP growth surpassing expectations, expanding to 7.6%.

CPI inflation for the current fiscal year 2023-2024 is projected at 5.4%, with a fourth-quarter projection of 5%. Looking ahead to FY25, inflation is estimated to be 4.5%, with quarterly projections provided to guide stakeholders' expectations.

The RBI's decision to maintain the repo rate at 6.5% underscores its commitment to balance inflation management with supporting economic growth.

With optimistic GDP growth projections and inflation forecasts, stakeholders can navigate the economic landscape with greater clarity and confidence.

RBI policy announcement and its implications for the Indian economy, catering to readers seeking insights into monetary policy and economic trends.