RBI Keeps Repo Rate Unchanged; GDP Growth Projected at 6.5% for FY24: Shaktikanta Das

The Monetary Policy Committee has decided to keep the policy repo rate unchanged at 6.5 per cent, RBI Governor Shaktikanta Das said on Thursday.

Consequently, the Standing Deposit Facility (SDF rate) remains at 6.25 per cent and the marginal standing facility and the bank rates stand at 6.75 per cent, Shaktikanta Das said.

"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," the RBI Governor stated.

The Consumer Price Inflation in India eased during March-April 2023 and moved into the tolerance band, declining from 6.7 per cent in 2022-23, he said at the press conference.

"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. As per our assessment, inflation will remain above 4 per cent throughout 2023-24," the RBI Governor said.

India's real Gross Domestic Product (GDP) recorded a growth of 7.2 per cent in 2022-23, stronger than the earlier estimate of 7 per cent and it has surpassed its pre-pandemic level by 10.1 per cent, he added. "Taking all factors into consideration, the real GDP growth for the year 2023-24 is projected at 6.5 per cent, the RBI Governor added.