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Key takeaways from Reserve Bank of India's MPC meet The RBI kept the key policy rate unchanged at 6.5% for the 9th time in a row, its growth projections also remained unaltered at 7.2% for the current financial year.
DH Web Desk
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<div class="paragraphs"><p>Reserve Bank of India Governor Shaktikanta Das.</p></div>

Reserve Bank of India Governor Shaktikanta Das.

Credit: Reuters Photo

The Reserve Bank of India's Monetary Policy Committee (MPC) on Thursday kept the repo rate unchanged at 6.5 per cent for the ninth time in a row. Governor Shaktikanta Das also emphasised the 'need to be watchful' citing persistent high food inflation.

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Here are the key takeaways from the meet:

-- RBI kept the repo rate unchanged at 6.5 per cent.

-- RBI kept growth projection unchanged at 7.2 per cent for current financial year.

-- Food component of inflation has remained stubborn.

-- Inflation and growth are evolving in balanced manner, though we need to remain vigilant on food prices front

-- RBI decided to continue with the withdrawal of the accommodative monetary policy stance

-- Manufacturing activities have continued to gain ground on back of increasing domestic demand, services sector have remained buoyant

-- Household consumption is supporting the turnaround in demand

-- Improved agricultural activities brighten prospects of rural consumption

-- RBI Governor said a degree of relief in retail inflation is expected from pickup in southwest monsoon

-- RBI Governor projects retail inflation at 4.5 per cent during FY'25 assuming normal monsoon.

-- Continued high food prices slowed the process of disinflation in Q1 FY'25

-- High food inflation also impacts household inflation expectations.

-- Overall inflation trajectory moderating, expect continued moderation, but need to be watchful, said Governor Das

-- MPC has to be vigilant as country is witnessing persistently high food inflation, he added

-- Indian Rupee remained largely range-bound in August, said Das

-- India's forex reserves touched a record high of $675 billion as of August 2.

-- RBI proposes a public repository of digital lending apps to check unauthorised players.

-- Inflation and growth evolving in a balanced manner, though we need to remain vigilant on food prices front.

-- Global economic outlook exhibits steady, though uneven expansion

-- New technologies like AI pose new set of challenges for global economy

-- RBI will continue to be nimble and flexible in liquidity management operations

-- Indian financial system remains resilient, gaining strength from broader macroeconomic stability

-- RBI Guv Shaktikanta Das expressed concern over rising disbursals of top-up home loans; asked lenders to take remedial actions.

-- Current Account Deficit likely to remain imminently manageable during this fiscal, said RBI Governor Das

-- RBI raises tax payment limit through UPI from Rs 1 lakh to Rs 5 lakh

-- RBI raises frequency of reporting of banks to credit information companies to a fortnight, as against once a month currently

-- RBI proposes steps to speed up clearance of cheques to few hours

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(Published 08 August 2024, 11:42 IST)