RBI Monetary Policy 2024: On June 7, 2024 the Governor of Reserve Bank of India (RBI) Shaktikanta Das has announced bi-monthly monetary policy of the financial year 2024-25 on Friday via press conference. This meeting is the first monetary policy meeting after 2024 Lok Sabha election. The RBI MPC meeting was scheduled from June 5-June 7.
The Monetary Policy Committee (MPC) decided to keep the Repo Rate steady at 6.5 per cent. The last hike was in February 2023. The RBI Monetary Policy Committee led by Governor Shaktikanta Das has six members. Shaktikanta Das said that four members among six MPC members has vote to keep repo rate steady.
The Key decision that took in the RBI Monetary Policy Committee meeting for 2024
The Key decision that took in the RBI Monetary Policy Committee meeting are
- The Repo Rate has remained steady at 6.5 %, which marked the seventh consecutive meeting. Four members among six MPC members has vote to keep repo rate steady.
- The Policy stance continues to be “withdrawal of accommodation”, with 5:1 majority within Monetary Policy committee.
- The RBI raised its GDP growth forecast for FY25 to 7.2% from 7% earlier. The quarterly growth targets are 7.3% for Q1, 7.2% for Q2, 7.3% for Q3 and 7.2% for both Q4. The RBI Governor said, “The developments relating to growth and inflation are unfolding as per our expectations. When the projected GDP growth of 7.2% for 2024-25 raised, it will be the fourth consecutive year of growth at or above 7%. The risks are evenly balanced”
- The Reserve Bank of India today forecast CPI-based retail inflation at 4.5% for FY25. The quarterly estimates are 4.9% for Q1, 3.8% for Q2, 4.6 % for Q3 and 4.5 % for Q4. The RBI Governor said in ANI, “The outlook on crude oil prices remains uncertain due to geopolitical tensions. Assuming a normal monsoon, CPI inflation for 2024-25 projected at 4.5% with Q1 at 4.9%, Q2 at 3.8%, Q3 at 4.6% and Q4 at 4.5%, the risks evenly balanced.”
- The Standing Deposit facility rate remains at 6.25 % and the Marginal Standing Facility bank rate at 6.75%.
- RBI to set up Digital Payments Intelligence Platform which will harness advanced technologies to mitigate payment fraud risks. To take this initiative forward, the Reserve Bank has constituted a committee (Chairman: Shri A.P. Hota, former MD & CEO, NPCI) to examine various aspects of setting up a digital public infrastructure for Digital Payments Intelligence Platform.
- India’s foreign exchange reserves has reached at US$ 651.5 billion as on May 31, 2024, which touched new milestone by this historical growth.
- The Indian rupee (INR) moved in a narrow range with low volatility during 2024-25 so far (up to June 5), despite trading under pressure amidst foreign portfolio investment (FPI) outflows.
- RBI to introduced auto-top up feature of UPI Lite wallet – Inclusion under the e-mandate framework. The UPI Lite facility currently allows a customer to load his UPI Lite wallet upto ₹2000/- and make payments upto ₹500/- from the wallet.