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RBI Holds Repo Rate Steady at 6.5% and Keeps FY25 GDP Growth Forecast at 7.2% in 4th Bi-monthly MPC Meeting.

Banking & Finance | Dated: 17 Oct 2024

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) convened from October 7 to October 9, 2024, and announced its fourth Bi-Monthly Monetary Policy for the Financial Year 2024-25 (FY25). The RBI continues to project India's real Gross Domestic Product (GDP) growth at 7.2% for FY25.

🎯 Key Highlights:

- For FY25, RBI has estimated real GDP growth as follows: 7.0% for Q2, 7.4% for Q3, and 7.4% for Q4. The projection for Q1 of 2025-26 is set at 7.3%.

💡 Other Important Facts:

(i) This meeting marked the 51st MPC session.
(ii) The repo rate under the Liquidity Adjustment Facility (LAF) was maintained at 6.50%, remaining unchanged for the 10th consecutive time, with a majority vote of 5:1. Nagesh Kumar voted in favor of reducing the policy repo rate by 25 basis points.

📚 Test Your Knowledge:

What was the repo rate maintained by the RBI recently in the 4th Bi-monthly MPC Meeting?

Correct Answer: 6.5%

🚀 Quick Recap:

About RBI

CEO : Shaktikanta Das
Headquarter : Mumbai