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Live updates on the RBI Governor’s speech

By Aug 10, 2023
Live updates on the RBI Governor's speechLive updates on the RBI Governor's speech

Repo rate remains the same and inflation is expected to reach 5.4%

LIVE Updates from RBI MPC Meeting: Insights by Governor Shaktikanta Das

During the RBI MPC Meeting on August 10, Governor Shaktikanta Das delivered pivotal insights. A significant highlight was the upward revision of the CPI inflation projection for 2023-2024, escalating from 5.1 percent to 5.4 percent. Meanwhile, the GDP growth forecast for the same period remained steady at 6.5 percent.

Live Updates on RBI Governor’s Speech: Repo Rate Maintained at 6.5 Percent

Governor Shaktikanta Das announced that the MPC unanimously decided to maintain the repo rate at 6.5 percent on August 10. Additionally, the bank rate for both the marginal standing facility and standing deposit facility remained consistent at 6.75 percent and 6.25 percent, respectively. The MPC maintains its strategic focus on gradually unwinding accommodations while remaining ready for potential actions.

LIVE Updates from RBI MPC Meeting: Introduction of 10% ICRR on Bank Deposits

In the ongoing RBI MPC Meeting, the Reserve Bank of India introduced an incremental Cash Reserve Ratio (ICRR) of 10 percent on bank deposits. As clarified by Governor Shaktikanta Das, this measure pertains to deposits accumulated between May 19 and July 28. This short-term move aims to address excess liquidity stemming from the reintroduction of Rs. 2000 notes.

Revised Inflation Outlook for FY24: Elevated Projections

The recent MPC Meeting on August 10 witnessed the Reserve Bank of India revising its inflation projection for fiscal year 2023-2024. The projection was increased by 30 basis points, reaching 5.4 percent. This adjustment is attributed to a substantial 100 basis points surge in the Q2 projection, now standing at 6.2 percent. The surge in vegetable costs was a primary driver for this significant rise in the full-year inflation forecast.

Key Takeaways from RBI 2023 MPC Meeting

During the August 10 MPC Meeting, the Reserve Bank of India chose to maintain the policy repo rate at 6.50 percent, marking the third consistent decision. This ensures stability in interest rates governing housing and car loans, with no alterations.

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