Top 10 Best Private Banks in India List 2024
April 30, 2024
In the latest monetary policy of the RBI statement for the 2024-25 financial year, the Reserve Bank of India (RBI) opted to maintain the key policy repo rate at 6.5%. This marks the seventh consecutive time the rate has remained unchanged. The decision, widely anticipated by analysts, reflects India’s strong economic growth despite persistent inflation.
No Change in Repo Rate or Stance
In a 5:1 majority vote, the MPC held the RBI monetary policy Repo Rate steady at 6.5%. Consequently, other key rates remain unchanged, like the standing deposit facility (SDF) rate and the marginal standing facility (MSF) rate. The policy stance also focuses on ‘withdrawal of accommodation,’ prioritising inflation control while supporting this amazing economic growth.
Projection of Positive Growth
The RBI projects a strong real GDP growth of 7% for India in FY25. Consumption is expected to be a key driver of rural and urban markets. A positive agricultural outlook, supported by a good wheat harvest, should further strengthen rural demand.
Easing Inflation
While acknowledging a decline in inflation, the RBI cautioned against complacency. Food price uncertainties pose a significant risk! Though a record wheat production and a potentially good Kharif season, the nation can see some hope for price moderation. The RBI has projected CPI (Consumer Price Index) inflation for FY25 at 4.5%.
Ray Of Hope
Not only the statistical records but the RBI Governor also announced a scheme to facilitate wider non-resident participation in sovereign green bonds. This initiative will allow investment and trading of these bonds within the International Financial Services Centre (IFSC).
Cherry On The National Growth
The RBI plans to review the liquidity coverage ratio (LCR) framework for banks. Technological advancements enabling instant money withdrawals and transfers necessitate reevaluation, which the RBI decided to do to ensure banks maintain adequate liquidity.
The latest monetary plan presented by the RBI indicates cautious optimism. The focus remains on controlling inflation while supporting economic expansion. The coming months will be crucial in observing how global factors and domestic efforts to tame inflation play out.
