RBI MPC: Repo rate will remain at 6.5%, the governor said after the MPC meeting, increase in inflation rate for FY24

Posted on 10th Aug 2023 by rohit kumar

The repo rate will remain at 6.5 percent, RBI Governor Shaktikanta Das announced after the MPC meeting. He said that the banks are strong. NPA has come down. Corporate balance sheets have strengthened. India's strong macroeconomic fundamentals remain. Indian economy remains strong. The RBI governor has said that inflation has been affected by the increase in the prices of vegetables. Inflation is expected to increase in July-August. Speaking after the MPC meeting, the RBI governor has said that the Reserve Bank has proposed a framework to allow borrowers to adopt a fixed interest rate regime.

 

All members of the MPC are in favor of keeping the interest rates stable.

He told that during the MPC meeting, all the members were unanimously in favor of keeping the interest rates stable. He also told that interest rates at the global level will remain high for a long time. The RBI governor said that the challenges of inflation and debt persist in the global economy. The RBI Governor said that India is more capable of dealing with economic challenges than other countries.

 

Indian becomes fifth largest economy in the world: RBI Governor

After the MPC meeting, RBI Governor Shaktikanta Das said that our economy continues to grow at a reasonable pace and has become the 5th largest economy in the world, and is contributing around 15% to global growth. The RBI governor said that the CPI is estimated to increase from 5.1% to 5.4% in FY 24. The RBI chief said that the GDP growth in FY24 could be 6.5%. Whereas in FY25, GDP can be 6.6%. The CPI in FY25 is estimated to be 5.2%. The RBI governor said the transmission of monetary policy is still on, as headline inflation remains above the target of 4 percent. RBI Governor Das said the MPC will remain vigilant on inflation and remain steadfast in its commitment to bring inflation down to the target level.

 

Also Read: Bengaluru: "Haye Rey Bengaluru traffic", loss of Rs 19,725 crore every year; claim in the study

Other news