RBI keeps repo rate at 6.5% and raises GDP growth forecast to 7.2%

From Hindustan Times: 2024-06-07 00:49:54

RBI Governor Shaktikanta Das announced that the central bank will take further steps to moderate unsecured loans and advances during the MPC meeting. The financial sector in India remains robust, with stable asset quality and rising profitability, especially in the banking system and NBFCs. The RBI transferred ₹2.11 lakh crore to the government as dividend and decided to keep the CRB at 6.5%. Inflation estimates for FY25 were retained at 4.5%, while GDP growth forecasts were raised to 7.2%. The repo rate was kept unchanged at 6.5% by a 4:2 majority, with a stance of ‘withdrawal of accommodation’. Analysts anticipate a possible repo rate cut in October and a prudent approach from the RBI. Market sentiment is bullish due to strong economic indicators, corporate earnings, and liquidity availability. The rupee remained steady ahead of the RBI policy decision, and the Sensex and Nifty 50 opened flat. The RBI is unlikely to cut rates before the US Federal Reserve and last hiked the repo rate in February 2023. India’s GDP grew by 8.2% in FY24, driven by strong performance in the manufacturing sector.



Read more at Hindustan Times: RBI Monetary Policy LIVE Updates: RBI keeps repo rate unchanged at 6.5%; raises FY25 GDP growth forecast to 7.2%