From GDP to inflation: Key highlights of RBI's monetary policy

Following are the highlights of RBI's bi-monthly monetary policy announced by Governor Shaktikanta Das:

• Benchmark interest rate or repo rate kept unchanged at 6.5%

• GDP growth for 2024-25 projected at 7%, lower than 7.3% this fiscal

• Retail inflation to average 5.4% this fiscal, to come down to 4.5% in 2024-25

• Monetary transmission by financial institutions still remains incomplete

• Current economic momentum to sustain in the next fiscal

• Recovery in rabi sowing, sustained profitability in manufacturing, resilience of services to support economic activity in 2024-25

• Investment cycle gaining steam, signs of revival in private sector capex

• Indian economy making confident progress on strong, sustained growth path

• Rural demand continues to gather pace, urban consumption remains strong

• Govt adhering to fiscal consolidation path; domestic economic activity strong

• Uncertainty in food prices continue to impinge on headline inflation

• Increasing geopolitical tension impacting supply chain, putting pressure on commodity prices

• Forex reserve at USD 622.5 billion; comfortable for meeting foreign obligations

• Domestic financial system remains resilient with a healthy balance sheet

• Regulated entities should accord highest priority to compliance, consumer interest protection

• RBI to introduce an offline functionality in CBDC-Retail
  for transactions in areas with poor or limited internet connectivity.

• Exchange rate of Indian rupee remained fairly stable in the current fiscal

• Next monetary policy committee (MPC) meeting scheduled during April 3-5, 2024.