GDP, CPI and Shaktikanta Das stance: Key takeaways from RBIs MPC meeting
The only significant change in the numbers were the Consumer Price Index (CPI) rate was revised from 5.1 per cent to 5.4 for the financial year 2023-24.
A surprise was least expected from Reserve Bank of India (RBI) governor Shaktikanta Das regarding the Indian economy's numbers, which were to be announced on Thursday (August 10) morning.
He threw no surprise on Thursday when he maintained the repo rate at 6.50 per cent, the fourth consecutive monetary policy meeting, when it remained unchanged.
The only significant change in the numbers were the Consumer Price Index (CPI) rate was revised from 5.1 per cent to 5.4 for the financial year 2023-24.
Not just the repo rate, GDP growth forecast for all quarters also remained unchanged at 6.50 per cent.
After the meeting, Das said that India’s strong macroeconomic fundamentals have led to strong growth, and the country is contributing approximately 15 per cent to global growth.
He said that the central bank is keen to take swift action if required, but he also predicted global growth to remain slow in the next few years.
"The RBI is prepared to act if warranted; and global growth will remain low by historical standards for the next few years."
ZeeBiz takes you through some of the key takeaways of the MPC meeting.
Repo rate
The repo rate was kept unchanged at 6.50 per cent. The last time the RBI made a change was in December 2022.
CPI Rate and Estimates
The RBI has revised its inflation forecast for Q2 and Q3 higher because of the sharp increase in food prices.
The CPI for FY24 has been revised to 5.4 per cent from 5.1 per cent .
CPI estimates for different quarters are-Q1FY24 (5.4 per cent), Q2FY24 (6.2 per cent) , Q3FY24 (5.7 per cent), Q4FY24 (5.2 per cent), Q1FY25 (5.2 per cent).
GDP forecast
The RBI hasn't changed its GDP forecast for all quarters.
They are; for Q1FY24 (8 per cent), for Q2FY24 (6.5 per cent), for Q3FY24 (6 per cent), for Q4FY24 (5.7 per cent), for Q1FY25 (6.6 per cent)
ICRR
The central bank has imposed a 10 per cent Incremental CRR (ICRR) on deposits received by banks between May 19 and July 28.
Das said that the measure is temporary and aimed at mopping up excess liquidity after the return of Rs 2,000 currency notes.
Rupee value and Forex Reserve
Das said that the rupee has remained strong since January this year and Forex Reserves have crossed the $600-billion barrier.
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