Reserve Bank of India (RBI) Shaktikanta Das on Thursday announced that banks can now issue RuPay pre-paid forex cards. With this, the RBI also announced to expand the scope of an e-rupee voucher. To let this happen, non-bank companies could issue such instruments independently.
MPC announced to keep repo rate at 6.5%. Standing Deposit Facility Rate remains at 6.25%. Marginal Standing Facility Rate and Bank Rate unchanged at 6.75%.
CPI inflation is still above RBI’s target of 4% and is expected to remain above it through 2023-24 as per our forecasts, Das said.
“Flagging concern about the growing inflation, RBI Governor said that given the uncertainty in monsoon season and international commodity prices and financial market volatility, inflation remain a risk for the economy,” the RBI Governor stated.
He added, “Inflation still remains above the 4% target and just being the 2-6% is not enough. Risks to CPI inflation forecast evenly balanced. Goal is to reach the targeted 4% inflation going forward.”
The RBI MPC keeps the GDP growth rate at 6.5%. “On a quarterly basis, the GDP growth rate stands at 8% in Q1FY24, 6.5% in Q2FY24, 6% in Q3FY24, and 5.7% in Q4FY24.”
He also informed that the Reserve Bank will remain nimble in liquidity management. “RBI to ensure orderly completion of govt. Market borrowing program in the stipulated time.”
He said MPC will take further monetary actions as required to keep inflation expectations firmly anchored. He also announced that the real policy rate will continue to be positive and the average system liquidity is still above the average margin in surplus mode.
“It could further increase as ₹2,000 banknotes get deposited in banks,” Das said.
Das also said that RBI will remain aware and play proactive role in dealing with emerging risks to price and financial stability.
Source By: livemint
