Reserve Bank of India (RBI) maintained its benchmark interest rate (repo rate) at 6.5% during its 6th bi-monthly policy announcement for the financial year 2023–24.

Banking & Finance

Reserve Bank of India (RBI) maintained its benchmark interest rate (repo rate) at 6.5% during its 6th bi-monthly policy announcement for the financial year 2023–24. This was the sixth time that RBI left rates unchanged, and notably for the entire FY24, the repo rate stood at 6.5%. In addition, RBI Governor Shaktikanta Das-headed MPC also left standing deposit facility and marginal standing facility rates unchanged at 6.25% and 6.75%, respectively. On the growth front, the RBI projects a 7% real GDP growth for the upcoming financial year 2024–25 from the previous projection of 6.6%. This projection includes a growth rate of 7.2% in Q1, 6.8% in Q2, 7% in Q3, and 6.9% in Q4. Meanwhile, in the second quarter of the fiscal year 2023-24 (Q2FY24), the GDP growth expanded to 7.6%, exceeding analysts' expectations.


      The projected CPI inflation rate for the current year, 2023-2024, stands at 5.4%, with the fourth quarter (Q4) projection at 5%.

      Looking ahead to the next financial year, FY25, the projected inflation rate is estimated to be 4.5%, with projections for each quarter as follows: Q1 at 5%, Q2 at 4%, Q3 at 4.6%, and Q4 at 4.7%.

     

 

     


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