RBI MPC meeting highlights: RBI Governor Shaktikanta Das in the post MPC decision press conference said reaching 4% inflation should not be a one-off event. Earlier today, MPC decide to leave key interest rate unchanged for 5th straight time. It raised GDP growth forecast for FY24 to 7% from 6.5% and also hiked UPI limit for hospitals and educational institutions
RBI MPC meeting live updates: MPC voted unanimously to keep policy repo rate unchanged at 6.5%, its fifth pause on the trot. All members voted in favour of remaining focussed on withdrawal of accommodation stance, while five out of six members voted in favour of continuing stance.
–The benchmark lending rate or the repo rate will remain unchanged at 6.5 percent, Reserve Bank of India (RBI) Governor Shaktikanta Das announced on December 8, following the conclusion of the three-day meeting of the central bank’s Monetary Policy Committee (MPC).
–Other key announcements: Inflation projection for the ongoing fiscal has been retained at 5.4 percent, whereas, the GDP growth forecast has been upgraded from 6.5 percent to 7 percent.
Clearly, Das believes that the economy is firing on all engines and even if one of its engines (private investment) is yet to live up to expectations, it would soon get there. As for the other engine, private consumption has moderated, Das is positive that conditions are ripe for consumption to improve from here on.