RBI MPC Meeting: The RBI’s credit policy has been announced today. RBI Governor Shaktikanta Das stated that the Monetary Policy Committee (MPC) has decided, with a majority, not to change the policy rates. This means there is no change in the lending rates for banks, and the repo rate will remain at 6.50%. The inflation estimate for the financial year 2025 is maintained at 4.5%.
Here are the key points of RBI Governor’s policy announcement:
The global slowdown has several causes, starting from the COVID-19 crisis to the Russia-Ukraine conflict in February 2022, leading to global instability. The Monetary Policy Committee met between October 7 and 9 and made a collective decision. The MSLR is also kept at the same level of 6.75%.
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The RBI Governor said that the bank rate is maintained at 6.75%, and the MPC has changed its stance to neutral. This new stance is in line with global conditions and the country’s steady and growing economy. The Governor acknowledged that inflation and the rupee are affected by global tensions but assured that the rupee’s position is not in danger and remains within a stable range.
RBI’s GDP Estimate for the Current Financial Year
The RBI Governor stated that the GDP growth rate for the financial year 2024-25 is estimated to be 7.2%, which remains unchanged. However, future GDP estimates have been revised.
- For the second quarter (July-September) of FY 2024-25, the GDP growth estimate has been reduced from 7.2% to 7%.
- For the third quarter (October-December) of FY 2024-25, the estimate has been increased from 7.3% to 7.4%.
- For the fourth quarter (January-March) of FY 2024-25, the estimate has also been increased from 7.2% to 7.4%.
- For the first quarter of FY 2025-26, the growth estimate has been raised to 7.3% from the previous 7.2%.
The RBI Governor emphasized the need to closely monitor fluctuating crude oil prices, as they significantly impact both global and national inflation and GDP estimates. The RBI will continue to keep a close watch on these factors.
