On August 8, 2024, the Reserve Bank of India (RBI) announced that it is keeping the repo rate steady at 6.5% for the ninth consecutive time. This decision was anticipated by market experts. The RBI’s monetary policy committee (MPC), which ran from August 6 to August 8, also decided to maintain its current policy stance of “withdrawal of accommodation.”
RBI Governor Shaktikanta Das revealed that the decision to keep the interest rate unchanged and continue with the same policy stance was made by a 4:2 vote among the committee members.
The RBI has kept its growth projection for the fiscal year 2025 at 7.2%. For the first quarter, the growth is expected to be 7.1%, rising to 7.2% in the second quarter, 7.3% in the third quarter, and 7.2% in the fourth quarter.
Regarding global economic conditions, Das stated that while the long-term outlook remains positive, there are significant challenges in the medium term. He also noted that global financial markets have been showing volatility.
Additionally, the RBI has maintained its consumer price index (CPI) inflation estimate for FY25 at 4.5%.
