New Delhi February 09, 2024.
Reserve Bank of India (RBI) Monetary Policy Committee (MPC) kept repo rates unchanged at 6.5% and is focused on the withdrawal of accommodation, Governor Shaktikanta Das said. It projects real GDP growth of 7 percent for FY'25 with risks evenly balanced.
RBI keeps the repo rate steady at 6.5% with five out of six members voting in favour of the rate decision Experts were also expecting the repo rate to remain steady at 6.5 percent
– MPC also decided by a majority (5 out of 6 members) to remain focused on the withdrawal of accommodation to ensure the inflation progressively aligns with the target while supporting growth. Monetary policy must continue to be actively disinflationary, RBI Governor Shaktikanta Das said in his statement.
RBI's announcement on KFS requirement for retai and MSME will foster transparency, says Jocata CEO
RBI MPC Meeting 2024 Live: Hailing the Reserve Bank of India's key announcement on Key Fact Statement (KFS) requirements for retail and MSME loans, Prashant Muddu, Managing Director & CEO, Jocata said the move will bring transparency within the credit system.
"The Reserve Bank of India's (RBI) announcement on Key Fact Statement (KFS) requirements for retail and MSME loans will foster more transparency within the credit ecosystem. This will bring clarity among borrowers about the terms of loan agreement including the complete cost of the loan such as loan rate of interest and other associated costs such as the processing fees, legal charges etc. Going forward, the industry will see further tightening of the regulatory environment and more policy push for banks, NBFCs, and FinTechs towards priority sector lending," said Prashant Muddu.
Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank said, "RBI has retained rates and stance in expected lines. Further, the focus on necessity of inflation to settle closer to 4% remains intact suggesting RBI continues to remain cautious on inflation. We continue to expect RBI to fine tune liquidity conditions to manage the overnight to inch towards the repo rate. The change in stance could follow towards end of 1QFY25 and subsequently shallow rate cuts starting in 2HFY25."
