RBI MPC August 2024: Repo Rate Unchanged, FY25 Growth Kept At 7.2%, CPI Inflation Remains At 4.5%

The RBI MPC on Thursday, August 8, kept the key repo rate unchanged for the 9th consecutive time at 6.5 per cent, with the majority (4 out of 6 members) maintaining the stance of ‘withdrawal of accommodation’. The repo rate decision has been taken with a 4:2 majority.

The RBI has kept FY25 GDP projection unchanged at 7.2 per cent. Its FY25 CPI inflation projection also stood the same at 4.5 per cent.

While announcing the bi-monthly monetary policy statement on Thursday, RBI Governor Shaktikanta Das said, “India’s growth remains strong, inflation is on a declining trajectory.”

Global near-term outlook looks positive, medium-term outlook looks challenging, he said.

On India inflation, the RBI governor said expected moderation in headline inflation on account of a favourable base is likely to reverse in the third quarter.

The reverse repo rate stands at 3.35 per cent.

The repo rate is the rate at which the RBI lends money to the commercial banks, whereas the reverse repo rate on commercial banks’ deposits with the RBI.

The SDF (standing deposit facility) stands at 6.25 per cent, while MSF (marginal standing facility) and Bank Rates are at 6.75 per cent. The SDF is the lower band of the interest rate corridor, while the MSF is the upper band.

The cash reserve ratio (CRR) stands at 4.5 per cent and the statutory liquidity ratio (SLR) stands at 18 per cent.