RBI Monetary Policy Meeting: The RBI maintains its hawkish pause and restates that the 4% inflation objective, not the 2-6% target.

Spread the love

The RBI Monetary Policy Committee meeting: In accordance with expectations, the RBI maintained the 6.5% repo rate in its October monetary policy. The 6.5% GDP growth prediction for FY24 was likewise maintained by the central bank.

RBI Monetary Policy
RBI Monetary Policy

The RBI Monetary Policy Committee meeting: Governor of the Reserve Bank of India (RBI), Shaktikanta Das, maintained the 6.5% repo rate.

  • The repo rate remains at 6.5%.
    The rate for the standing deposit facility (SDF) is at 6.25%.
  • The bank rate and marginal standing facility (MSF) rate are maintained at 6.75%.
    With a 4.5% CRR
    RBI Monetary Policy: GDP Forecasts:
    The 6.5% real GDP growth forecast for FY24 is maintained.
  • GDP forecasts remain unchanged for Q2 and Q3 of FY24, at 6.5% and 6%, respectively.
  • The 5.7% GDP estimate for Q4FY24 remains unchanged.
  • The 6.6% GDP growth estimate for April–June 2024, or Q1FY25, remains unchanged.
    Forecast for Inflation
    The RBI maintains the 5.4% CPI inflation estimate for FY24.
  • The Q2FY24 CPI inflation estimate was increased from 6.2% to 6.4%.
  • The Q3FY24 CPI inflation estimate was lowered from 5.7% to 5.6%.
  • The 5.2% CPI inflation estimate for Q4FY24 was kept intact. – The 5.2% CPI inflation projection for Q1FY25, or April–June 2024, was left unchanged.
    RBI Monetary Policy for Development and Regulation
    The UCB gold loan cap was doubled.

    RBI Monetary Policy has decided to raise the monetary ceiling of gold loans that can be granted under the bullet repayment scheme from ₹2 lakh to ₹4 lakh for urban cooperative banks (UCBs) that have met the overall PSL target and sub targets as of March 31, 2023, in an effort to incentivize UCBs that have met the prescribed PSL targets as of that date.
  • Additional Card-on-File Tokenization routes
    The introduction of Card-on-File (CoF) token generating capabilities at the issuer bank level was suggested by the RBI. This action will make it easier for cardholders to generate tokens and connect them to their current accounts across a range of e-commerce platforms.
  • Under the PIDF program, PM Vishwakarma’s term was prolonged by two years.
    The Payments Infrastructure Development Fund (PIDF) Scheme will include the PM Vishwakarma, and it will be extended for a further two years, ending on December 31, 2025.
  • Structure for Regulated Entities to Recognize SROs
    An all-inclusive framework for the recognition of Self-Regulatory Organizations (SROs) for different Reserve Bank-regulated entities (REs) will be released by the RBI. The basic goals, roles, qualifying requirements, governance standards, etc. that will be shared by all SROs, regardless of industry, will be
  • outlined in the omnibus SRO framework.
    Structure for Financing Projects
    The RBI will provide a thorough set of regulations that apply to all regulated businesses and are intended for projects now in execution.
  • Normals for Credit Concentration
    RBI allows NBFCs operating in the Base Layer and Middle Layer to use qualified credit risk transfer instruments to offset their risks.

The RBI Monetary Policy Committee meeting: On October 6, the Reserve Bank of India (RBI) declared its monetary policy for the next month. The Monetary Policy Committee (MPC), chaired by RBI Governor Shaktikanta Das, kept interest rates and stance unchanged, as anticipated. The policy repo rate of 6.50% was unanimously voted to remain unchanged by the MPC. As a result, the bank rate is still 6.75%, the marginal standing facility (MSF) rate is still 6.25%, and the standing deposit facility (SDF) rate is still 6.25%. By a majority of five votes to six, the MPC also resolved to keep concentrating on removing accommodation in order to boost growth while ensuring that inflation gradually approaches the objective.

The RBI Monetary Policy Committee meeting is set for December 6–8, 2023.

Read more Articles here

Open Your Demat Account with Discount Brokers:

ZERODHA 1) : https://zerodha.com/open-account?c=EJ4366 

Angelone 2) : https://tinyurl.com/2gloc3g6 or

Upstox3): https://link.upstox.com/9w4tNo1rK8au7VK47

Spread the love

Leave a Comment