India Maintains Interest Rate at 6.50%: No Change in Monetary Policy

The interest rate decision for India’s currency, the INR, has been announced:

– Actual rate: 6.50%
– Expected rate: 6.50%
– Previous rate: 6.50%

Cash Reserve Ratio (CRR) for India:
– Actual: 4.50%
– Expected: 4.50%
– Previous: 4.50%

Reverse Repurchase (Repo) Rate for India:
– Actual: 3.35%
– Previous: 3.35%

RBI Governor announces that the Marginal Standing Facility Rate and Bank Rate remain steady at 6.75%.

The RBI Governor affirms that the Monetary Policy Committee (MPC) will maintain its focus on withdrawing accommodation.

It is stated by the RBI Governor that favorable dynamics in global inflation have unfolded.

The RBI Governor notes that robust growth provides policy flexibility to prioritize inflation concerns.

The RBI Governor emphasizes that the MPC remains vigilant regarding potential upside risks to inflation.

The RBI Governor highlights that challenges arise from uncertainties in food prices.

It is emphasized by the RBI Governor that policy should actively aim to reduce inflation.

The RBI Governor assures that the MPC will steadfastly pursue the goal of bringing inflation in line with the target.

The RBI Governor observes that the global economy has remained resilient with a stable outlook.

The RBI Governor states that the RBI will monitor for more comprehensive transmission of policy rates.

The RBI Governor warns that latent risks stemming from a high level of debt to GDP ratio have the potential to erupt unexpectedly.

The RBI Governor cautions that deteriorating debt situations in advanced economies may lead to spillover effects in emerging markets.

India’s 10-year benchmark government bond yield has increased by 3 basis points to reach 7.12%, up from 7.1010% prior to the policy announcement, with the previous close at 7.0934%.

The RBI Governor warns that emerging market economies facing an increase in public debt are susceptible to spillover effects.

The RBI Governor stresses the importance of prioritizing growth-enhancing investments to tackle challenges across all economies.

The RBI Governor notes that the Indian economy continues to grow at an accelerated pace.

The RBI Governor highlights the ongoing expansion of domestic economic activity at a brisk pace.

The RBI Governor expects consumption to drive economic growth in FY25.

The RBI Governor indicates a significant increase in the flow of resources to the commercial sector from banks compared to the previous year.

The RBI Governor expresses optimism about the outlook for agriculture and rural activity.

The RBI Governor anticipates that strengthening rural demand, improving employment conditions, and moderating inflationary pressures will bolster private consumption.

The RBI Governor maintains the real GDP growth forecast for FY25 at 7%.

The RBI Governor forecasts real GDP growth at 6.9% in Q2 and 7% in Q3 of FY25.

The RBI Governor cautions that uncertainties in food prices will impact the inflation outlook in the future.

The RBI Governor projects CPI inflation at 4.5% in Q4 of FY25.

The RBI Governor highlights that uncertainties surrounding food prices will influence the inflation outlook in the future.

The RBI Governor predicts CPI inflation to stand at 4.5% in Q4 of FY25.

The RBI Governor notes that liquidity conditions improved in February and March.

The RBI Governor attributes the relative stability of the Indian rupee to the country’s robust macroeconomic fundamentals.

The RBI Governor assures that key indicators of Indian banks remain strong.

The RBI Governor emphasizes the importance of prioritizing governance quality for banks, NBFCs, and other entities.

RBI Governor Shaktikanta Das announces that as of March 29, 2024, India’s foreign exchange reserves have surged to a record-breaking $645.6 billion.

The RBI Governor pledges to maintain constructive engagement with financial institutions to ensure financial stability.

India’s exports have shown robust growth in Q4 of FY24, according to the RBI Governor.

The RBI Governor anticipates that the current account deficit in FY25 will remain at a manageable level.

The RBI Governor expresses confidence in comfortably meeting external financing needs.

Sovereign green bonds trading will be notified at IFSC, announces the RBI Governor.

India’s bank loan growth in INR has slightly decreased from 20.4% to 20.2%, while deposit growth has also seen a minor decline from 13.7% to 13.5%. Additionally, India’s foreign exchange reserves in USD have risen marginally from $642.63 billion to $645.58 billion.

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