- All 6 RBI MPC members unanimously voted to keep repo rate unchangedat 6.5%. This is the fourth meeting on the trot that the MPC decided to maintain the status quo on the repo rate. The MPC last raised this rate from 6.25% to 6.50% at its meeting in February 2023.
- RBI remains focused on withdrawal of accommodation support growth, tame inflation.
- Cumulative repo rate hike of 250 bps still working its way through economy.
- Real GDP growth forecast retained at 6.5% for FY24.
- Inflation forecast too retained at 5.4% for FY24. Cooling vegetable prices, cut in LPG rates to soften inflation.
- RBI identifies high inflation as major risk to macroeconomic stability and sustainable growth.
- India is poised to become new growth engine of world.
- Limit of gold loan under Bullet Repayment Scheme for UCBs doubled to ₹4 lakh.
- Payments Infrastructure Development Fund scheme extended by 2 years to December 2025. It will now include beneficiaries of the PM Vishwakarma scheme.
- RBI has plans to undertake open market operation (OMO) with regard to G-secs to manage liquidity. This will be via auction mode.
- RBI will introduce the facility for creation of card-on-file tokenisation at the issuer bank level to enhance convenience for cardholders.
- RBI has allowed NBFCs (middle and base layer entities) to utilise credit risk mitigation tools to offset their exposure with eligible credit risk transfer instruments.
- Next Monetary Policy Committee (MPC) meeting scheduled for Dec 6-8, 2023.
Policy Rates
| Policy Repo Rate | : 6.50% |
| Standing Deposit Facility Rate | : 6.25% |
| Marginal Standing Facility Rate | : 6.75% |
| Bank Rate | : 6.75% |
| Fixed Reverse Repo Rate | : 3.35% |
Related Articles
