RBI kept Repo Rate unchanged for 8th consecutive time

New Delhi: The Reserve Bank of India’s Monetary Policy Committee (MPC) today announced no such changes in the repo rate. It remains unchanged at 6.5%, as mentioned in its first meeting after the Lok Sabha Elections 2024.

The Central Bank authority decided to hold the key policy rate for the eighth consecutive time in its June 2024 meeting. The last changed benchmark interest rate was in February 2023. 

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The incumbent has forecast the Real GDP growth to be at 7.2% for FY25 with a real focus on the withdrawal of the accommodative monetary policy stance to bring down inflation.

This makes the Growth projection for FY25 raised to 7.2% from 7%.

Meanwhile, Inflation forecast for FY25 is retained at 4.5% where Food inflation still remains a concern.

The current account deficit for FY25 expected to remain well within the sustainable level and foreign exchange reserves reportedly touched a fresh high of $651.5 billion as on May 31, 2024.

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Bulk deposit threshold is raised to Rs 3 crore from Rs 2 crore.

Export and import regulations will be rationalised under the Foreign Exchange Management Act (FEMA).

 The Central Bank is planning to set up a Digital Payments Intelligence Platform to harness advanced technologies to mitigate payment fraud risks.

 The Auto replenishment of balance Fastag, NCMC, and UPI-Lite wallets will be brought under the e-mandate framework as per RBI.

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