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.
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