AMN / WEB DESK
Reserve Bank of India RBI today announced its second bi-monthly policy of this fiscal and as expected the apex bank preferred to maintain status quo by keeping the key rates unchanged.
Announcing the policy review, RBI Governor Shaktikant Das said, Monetary Policy Committee decided to keep the policy repo rate unchanged at 6.5%, consequently, the Standing Deposit Facility (SDF rate) remains at 6.25% and the marginal standing facility and the bank rates stand at 6.75%.
The MPC also decided by a majority of five out of six members to remain focused on the withdrawal of accommodation to ensure that inflation progressively aligns with the target while supporting growth.
RBI Governor said that in India Consumer Price Inflation eased during March-April 2023 and moved into the tolerance band, declining from 6.7% in 2022-23.
Headline inflation, however, is still above the target as per the latest data and is expected to remain so according to our projections for 2023-24. He said that as per our assessment, inflation will remain above 4% throughout 2023-24.
Shaktikant Das said that taking into account all factors and assuming a normal monsoon, CPI headline inflation is projected at 5.1% for 2023-24.
RBI governor also spoke about the withdrawal of Rs. 2000/- note. He said, since the third week of May, the decline in currency in circulation and pick up in govt spending have expanded system liquidity. This has got further augmented due to the RBI’s market operations and the deposit of Rs 2000 banknotes in the banks.