Today Reserve Bank of India’s Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5% in its October 2024 meeting. The MPC has decided to change the stance to ‘neutral’. Easing of core inflation and decreasing global borrowing costs prompted the central bank to shift to a neutral stance. The RBI Governor has indicated that inflation is expected to remain elevated during September and October.
The Reserve Bank of India (RBI) kept interest rates unchanged today, as rising food prices continue to maintain economic pressure. However, easing core inflation and decreasing global borrowing costs prompted the central bank to shift to a neutral stance .
RBI Governor Shaktikanta Das stated that consumption and investments, key drivers of growth, remain stable. Speaking to reporters after the policy briefing on Wednesday, he noted that private investments are beginning to show signs of improvement. "All indicators suggest that private capital expenditure and government spending are performing well," Das said, adding that the services sector continues to thrive.
10 key points of Monetary Policy statement by #RBI
1. RBI did not change interest rates, stable at 6.5%
2. 5 out of 6 members of MPC voted in favor of keeping rates stable
3. MPC unanimously changed the policy stance to ‘neutral’
4. GDP and inflation estimates reduced in the second quarter
5. Close watch on unsecured loans
6. Expressed concern and warned about the arbitrary growth in NBFC
7. No penalty on non-business floating loan prepayment
8. FY25 GDP growth estimate 7.2%, CPI estimate remains at 4.5%
9. Q3, Q4FY25 GDP estimates raised to 7.4%
10. Q4FY25 CPI estimate reduced from 4.3% to 4.2%
The Reserve Bank of India (RBI) on Wednesday announced an increase in the per-transaction limit for UPI 123Pay from ₹5,000 to ₹10,000, and the UPI Lite wallet limit from ₹2,000 to ₹5,000.
The move aims to enhance the utility of digital payments for feature phone users and increase the convenience for those using the UPI Lite wallet for small transactions.
Next meeting of MPC scheduled during December 4 to 6.
