New Delhi. The Reserve Bank of India (RBI) has not made any change in the repo rate for the fifth consecutive time. As part of its initiative to control inflation, RBI has maintained stability in the repo rate through its five monetary policy reviews. The last revision was an increase of 6.5% in February, and since then, the repo rate has remained unchanged. The lack of adjustment in the repo rate has disappointed those who were expecting a reduction in EMIs for various loans like home and car loans. Now they may have to wait till February for any deduction.
Efforts continue to control inflation: RBI Governor Shaktikanta Das mentioned the continuous efforts of RBI to bring down the retail inflation rate to 4%. Due to rising inflation at the global level, challenges have arisen in controlling inflation. Although there has been some relief from falling prices of food items like edible oil and rice, there remains concern over rising prices of sugar.
RBI announced a major change in UPI transactions, allowing payments of up to Rs 5 lakh for educational institutions and hospital expenses, significantly higher than the previous limit of Rs 1 lakh. Lakhs of people are expected to benefit from this step.
#WATCH , RBI Governor Shaktikanta Das says, “…The Monetary Policy Committee decided unanimously to keep the policy repo rate unchanged at 6.5%. Consequently, the Standing Deposit Facility rate remains at 6.25% and the Marginal Standing Facility rate and the Bank Rate at 6.75%.” pic.twitter.com/yQSppS7IzJ
— ANI (@ANI) December 8, 2023
Important announcements by RBI Governor Shaktikanta Das:
All MPC members are in favor of maintaining repo rate stability.
Offline facilities will be launched for UPI payments.
Continuous improvement was seen in the performance of the Indian economy.
5 out of 6 members are in favor of returning to the liberal stance.
Core inflation has declined, but food inflation remains a matter of concern.
Concern about inflation due to food items becoming expensive in November and December.
New rules to reset floating loan rates.
Continuous improvement is being seen in rural demand.
The financial position of banks and corporates strengthened.
Scheme to raise funds for infrastructure projects through foreign debt.
The growth rate estimate for FY 2024 has been increased from 6.5% to 7%.
There was a renewed focus on returning to an accommodative approach to controlling inflation while pursuing economic growth.
Domestic demand is driving the Indian economy.
Eight key sectors saw better growth in October.
Food and fuel inflation has seen a decline since July.
There is concern about retail inflation rising again due to food items becoming expensive.