The Reserve Bank of India (RBI) has decided not to make any changes to the repo rate, keeping it at 6.5 percent.
This choice was made through a vote of 5-1 in the Monetary Policy Committee (MPC) meeting.
RBI Governor Shaktikanta Das mentioned that the global economy is still not stable due to increased debt, global tensions, and extreme weather.
Governor Das stated, “Even with global uncertainties, our country’s economy is strong. The foundation is solid.
” The Monetary Policy Committee (MPC) did not implement any new policies to control inflation or boost economic growth.
This marks the fifth consecutive time that the repo rate has remained at 6.5 percent.
The estimate for economic growth has been raised by RBI from 6.5 percent to 7 percent for the current financial year.
Governor Das pointed out strong figures like GST collections and PMI, indicating a robust foundation for the GDP growth rate to reach seven percent in this financial year.
RBI also provided estimated data for the retail inflation rate, remaining at 5.6 percent for October-December 2023, 5.2 percent for January-March 2024, and 5.2 percent for April-June 2024.
No changes have been made to these estimates. The projections for July-September 2024 and October-December 2024 are 4.0 percent and 4.7 percent, respectively.
Before the announcement of the policy rates, the stock market showed positive signs, with the Sensex reaching an all-time high of 69888 just minutes after opening.
As of now, the Sensex is trading around 69820, with a gain of 0.43 percent.
The Nifty also reached its peak at 21006, and currently, the Nifty of 50 shares is trading around 20,987.
