RBI Policy Meeting: RBI MPC Talks About Rising Inflation, GDP, Repo Rate, Credit Facility and More

07 Oct, 2023 Author: Ayushee Joshi

RBI MPC Meeting: The Reserve Bank of India held its fourth bi-monthly monetary policy meeting on October 6. The transmission of the 250 basis point repo rate drop is yet incomplete, according to RBI Governor Shaktikanta Das, who announced the bi-monthly monetary policy. The 6.5% real GDP growth forecast for FY24 stays unchanged. Similarly, inflation for FY24 is anticipated to be 5.4%, the same as previously.

RBI Policy Meeting Highlights

The RBI Governor has not changed the repo rate for the fourth time in a row. The repo rate has remained unchanged at 6.50 percent this time as well. All six members of the RBI monetary policy committee decided to keep the repo rate constant, while five of the six members agreed to retain the accommodating alignment. Governor Shaktikanta Das also stated that because rising inflation is a danger to the economy, reducing inflation is the RBI's top objective. The Central Bank Governor stated that it is preferable for banks with excess funds to pursue lending possibilities in the intermediary call money market rather than storing cash in an SDF (standing deposit facility) at lower rates.