RBI MPC meeting outcome: RBI maintains status quo on repo rate and stance check out other key highlights

RBI MPC meeting highlights, RBI MPC meeting June 2023: Reserve Bank of India (RBI) Governor Shaktikanta Das-led Monetary Policy Committee kept the repo rate unchanged at 6.50 percent. Check out the salient points from the RBI Mper cent meeting.

RBI MPC meeting highlights: Here are the key highlights

• Indian economy and financial sector stand strong and resilient amidst unprecedented global headwinds.
• RBI Monetary Policy Committee kept the repo rate unchanged at 6.5 per cent.
• RBI Monetary Policy decides to remain focussed on withdrawing accommodation of policy stance.
• Close and continued vigil on evolving inflation is absolutely necessary.
• The pace of global economic activity decelerated due to the geopolitical situation.
• MPC will continue to take policy actions promptly and appropriately to keep inflation expectations firmly anchored.
• Headline inflation is above the target of 4 per cent and expected to remain so during the rest of the year.
• Domestic demand condition remains supportive of growth; rural demand is on a revival path.
• Forex reserves are at comfortable levels.
• GDP growth in Q1 this fiscal year is expected at 8 per cent.
• RBI retains a growth projection at 6.5 per cent for FY'24 and expects 8 per cent growth in Q1, 6.5 per cent in Q2, 6 per cent in Q3 and 5.7 per cent in Q4.
• RBI lowers retail inflation projection to 5.1 per cent during FY'24 from an earlier estimate of 5.2 per cent.
• RBI Guv says monetary policy actions are delivering desired results.
• RBI will remain nimble in its liquidity management while ensuring adequate resources for the productive requirements of the economy.
• The current account deficit expected to moderate further in Q4, remains eminently manageable.

• The Indian rupee has remained stable since January this year.
• Net inflow in non-resident deposits increased to USD 8 billion in FY'23 from USD 3.2 billion in the previous year.
• Conditions favorable for capital expenditure to gain momentum.
• RBI allows banks to issue Rupay prepaid Forex cards.
• RBI will remain watchful and proactive in dealing with emerging risks to price and financial stability.

(With PTI Inputs)

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