Friday, 22 November 2024
Trending
FinanceIndia

6.5% repo rate is maintained by the Shaktikanta Das-led MPC

  • The Reserve Bank of India (RBI) has kept its key repo rate at 6.5%.
  • The third-quarter GDP growth of 8.4% in India and higher CPI inflation had an impact on the RBI’s decision.
  • The world economy is still strong, and solid indicators point to a steady future.

In light of forecasts for 4.5% CPI inflation and a 7% GDP growth in FY 2024–2025, the Reserve Bank of India (RBI) has kept its key repo rate at 6.5%.

The decision was taken at the first RBI MPC meeting of the new fiscal year, in spite of the uncertainty surrounding the global economy and the US Federal Reserve’s failure to begin the rate-cutting cycle.

GDP Growth

The third-quarter GDP growth of 8.4% in India and higher CPI inflation had an impact on the RBI’s decision. Because it controls system liquidity, the repo rate is important. Higher rates make borrowing more expensive for the average person, while lower rates make loans less expensive. The repo rate was raised by 250 basis points to 6.5% by the RBI after starting a cycle of rate hikes in 2022.

For the fiscal year 2024–2025, the Reserve Bank of India (RBI) has projected a real growth rate of 7.7%. 7.1% increase is anticipated in the first quarter of FY25, 6.9% in the second, and 7.1% in each of the third and fourth quarters.

Headline inflation eased to 5.1% in both January and February, according to RBI Governor Shaktikanata Das, who said that growth inflation dynamics had played out favorably.

The world economy is still strong, and solid indicators point to a steady future. The real GDP growth for 2023–2024 is expected to be 7.6%, the third year in a row of growth of 7% or more, according to RBI Governor Shaktikanta Das.

To facilitate retail investors’ participation in the government securities or bond markets, the RBI has also announced the release of a mobile app. For 2024–2025, the government intends to borrow a total of Rs 14.13 lakh crore, of which 53% will be borrowed in the first half.

Related posts
IndiaPolitics

Maharashtra 2024 Exit Polls: Mahayuti Leads, MVA Trails in Tight Contest

Mahayuti alliance predicted to win 128-195 seats in Maharashtra Assembly. MVA projected to secure…
Read more
IndiaWorld

PM Modi Welcomes Global Collaboration at G20 Summit in Brazil Amid Cultural Celebrations

PM Modi arrives in Rio de Janeiro for the 2024 G20 Summit, greeted by Indian diaspora with Sanskrit…
Read more
IndiaPolitics

Vijay's Political Ambitions: A Game-Changer for Tamil Nadu's 2026 Elections

Actor Vijay is expected to contest in the 2026 Tamil Nadu Assembly elections under Tamilaga Vettri…
Read more
Newsletter
Become a Trendsetter

To get your breaking, trending, latest news immediately without diluting its truthfulness join with worldmagzine immediately.

Leave a Reply

Your email address will not be published. Required fields are marked *

LifestyleReligious

2024 Papmochini Ekadashi Date, Time, And Rituals

Worth reading...