RBI Monetary Policy updates | Policy repo rate unchanged at 6.5%; real GDP growth for FY25 projected at 7%

RBI holds repo rate at 6.5% for 7th consecutive time; CPI inflation for FY25 has been projected at 4.5%;

April 05, 2024 10:10 am | Updated 01:43 pm IST

Reserve Bank of India (RBI) Governor Shaktikanta Das. File.

Reserve Bank of India (RBI) Governor Shaktikanta Das. File. | Photo Credit: AP

Announcing the decision of the Monetary Policy Committee of the Reserve Bank of India on April 5, Governor Shaktikanta Das said that policy repo rates will remain unchanged at 6.5%. 

The RBI also retained GDP growth forecast of 7% for 2024-25 financial year, with June quarter growth at 7%, and September quarter at 6.9%. In the third and fourth quarter the growth is expected to be 7% each. This is lower than the 7.6% expansion estimated for FY24.

In February, the Consumer Price-based Inflation (CPI) stood at 5.1%

The two-day review meeting of the MPC that commenced on April 3 concludes today. The RBI had maintained the status quo on policy rates and stances in its last review, which was held in February 2024. The central banking authority of India has kept the repo rate unchanged for the last six consecutive MPC meetings. 

(With agency inputs)

Read live updates here:

Highlights of RBI’s first bi-monthly policy statement for FY’25
  • Benchmark interest rate or repo rate kept unchanged at 6.5%
  • GDP growth for 2024-25 retained at 7%, lower than 7.6% last fiscal

  • Retail inflation to average 4.5% this fiscal, lower than 5.4% in FY25

  • Net inflows by foreign porfolio investors (FPI) stood at $41.6 billion during 2023-24, the second highest level of FPI inflow after 2014-15

  • Current Account Deficit in 2024-25 to remain at a level that is both viable and eminently manageable

  • The Indian rupee remained largely range-bound as compared to its emerging market peers as well as a few advanced economies during 2023-24. INR most stable among major currencies in FY24

  • Next monetary policy committee (MPC) meeting scheduled during June 5 to 7, 2024.


  • April 05, 2024 12:55
    A look at how India’s GDP growth rate has changed

    WhatsApp Image 2024-04-05 at 11.42.49 AM.jpeg

  • April 05, 2024 12:49
    A look at how the Forex reserves have changed over the last three years

    Forex RBI (till March 29, 2024).jpeg

  • April 05, 2024 11:31
    Domestic economic activity remains resilient: RBI

    The MPC also noted that domestic economic activity remains resilient, backed by strong investment demand and upbeat business and consumer sentiments. Headline inflation has come off the December peak; however, food price pressures have been interrupting the ongoing disinflation process, posing challenges for the final descent of inflation to the target. Unpredictable supply side shocks from adverse climate events and their impact on agricultural production as also geo-political tensions and spillovers to trade and commodity markets add uncertainties to the outlook, Mr Das said. 

    Read the full story here...
  • April 05, 2024 11:00
    Food price uncertainties continue to weigh on inflation outlook: RBI

    Going ahead, food price uncertainties would continue to weigh on the inflation outlook. An expected record rabi wheat production in 2023-24, however, will help contain cereal prices, the RBI said while announcing the Monetary Policy’s decision on maintaining the CPI inflation rate.

    Early indications of a normal monsoon also augur well for the kharif season. On the other hand, the increasing incidence of climate shocks remains a key upside risk to food prices. 

    Low reservoir levels, especially in the southern States and outlook of above normal temperatures during April-June, also pose concern. Tight demand supply conditions in certain pulses and the prices of key vegetables need close monitoring. 

    Fuel price deflation is likely to deepen in the near term following the recent cut in LPG prices. After witnessing sustained moderation, cost push pressures faced by firms are showing upward bias. The recent firming up of international crude oil prices warrants close monitoring. 

    Geo-political tensions and volatility in financial markets also pose risks to the inflation outlook, RBI added. 

  • April 05, 2024 10:54
    Headwinds from geopolitical tensions pose risk: RBI

    The prospects of fixed investment remain bright with business optimism, healthy corporate and bank balance sheets, robust government capital expenditure and signs of upturn in the private capex cycle, the RBI said in a press release announcing the decision of the Monetary Policy Committee.

    Headwinds from geopolitical tensions, volatility in international financial markets, geoeconomic fragmentation, rising Red Sea disruptions, and extreme weather events, however, pose risks to the outlook, it added.

  • April 05, 2024 10:53
    Services activity likely to grow to above pre-pandemic trend: RBI

    Looking ahead, an expected normal south-west monsoon should support agricultural activity. Manufacturing is expected to maintain its momentum on the back of sustained profitability, the RBI said while announcing the bi-monthly Monetary Policy decision for keeping the GDP growth rate for FY25 at 7%.

    Services activity is likely to grow above the pre-pandemic trend. Private consumption should gain steam with further pick-up in rural activity and steady urban demand. A rise in discretionary spending expected by urban households, as per the Reserve Bank’s consumer survey, and improving income levels augur well for the strengthening of private consumption, it said in a press release.

  • April 05, 2024 10:37
    Domestic economic activity continues to expand at an accelerated pace: Das
  • April 05, 2024 10:32
    India’s Forex reserves reach all-time high

    India’s foreign exchange reserves reached an all-time high of $645.6 billion as of March 29, 2024, Governor Das said. 

    He cited latest data on various external vulnerability indicators which suggested improved resilience of India’s external sector. 

    “We remain confident of meeting our external financing requirements comfortably,” he added. 

  • April 05, 2024 10:26
    Headline inflation has eased to 5.1% in Jan and Feb: Das

    Growth has continued to sustain its momentum, surpassing all projections. Headline inflation has eased to 5.1% during both January and February, and this has come down to 5.1% in these two months from the earlier peak of 5.7% in the month of December, RBI Governor said. 

    Looking ahead, robust growth prospects provide the policy space to remain focused on inflation and ensure its descent to the target of 4%, he adds.

  • April 05, 2024 10:19
    CPI inflation for FY25 projected at 4.5%

    Governor Das, announcing the Monetary Policy decision, said that CPI inflation for FY25 has been projected at 4.5%. The Committee has maintained its figures from February.

    Back in February, CPI inflation was projected at 5.4 per cent for 2023-24 with Q4 at 5.0 per cent.

    Food inflation pressures accentuated in February; MPC remains vigilant towards upside risk of inflation, says RBI Governor.

    High, persisting food inflation could unhinge anchoring of inflationary expectations, he added. 

  • April 05, 2024 10:19
    Standing Deposit Facility rate remains at 6.25%: Das

    The Standing Deposit Facility rate remains at 6.25% and the Marginal Standing Facility rate and Bank Rate remain at 6.75%, RBI Governor Shaktikanta Das said on Monetary Policy decisions.

  • April 05, 2024 10:16
    Real GDP growth for FY25 projected at 7%

    The Monetary Policy Committee has projected the real GDP growth for FY25 at 7%.

    This is also consistent with its announcement made previously in February. 

  • April 05, 2024 10:16
    Monetary policy must remain actively disinflationary at this stage: Das

    Robust growth provides space for monetary policy to remain focused on bringing inflation down to its 4% target, RBI Governor Shaktikanta Das said in his statement while announcing the decision of the Monetary Policy Committee.

    Monetary policy must remain actively disinflationary at this stage, Mr. Das said.

    - Reuters

  • April 05, 2024 10:11
    Monetary Policy Committee decides to keep policy rate unchanged at 6.5%

    The Monetary Policy Committee has decided to keep policy rate unchanged at 6.5%.

    The central banking authority of India has kept the repo rate unchanged for the last six consecutive MPC meetings.

    The decision was made with a majority of 5:1

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