New Delhi: Reserve Bank of India (RBI) Governor Sanjay Malhotra announced the decisions taken during the three-day Monetary Policy Committee meeting on Wednesday.
Governor Malhotra announced that MPC decided to continue with neutral stance and decided to keep repo rate rate unchanged at 5.5 per cent.
RBI MPC Meeting outcome highlights
RBI has decided to retain GDP growth forecast for current fiscal year at 6.5 per cent with risk evenly balanced, Malhotra announced. Geopolitical tensions continue to pose headwinds, the RBI Governor warned.
In a sigh of relief, Core inflation has remained steady as expected at 4 per cent, the RBI Governor said. Above normal monsoon, lower inflation continue to support economic activity, he added.
Malhotra said the impact of 100 bps rate cut this year is still unfolding.
RBI Governor announced that the growth in industrial sector remained subdued and uneven.
Monsoon progressing well, which brings buoyancy in the economy, says RBI Governor Sanjay Malhotra.
The RBI governor’s address assumes great significance as it came amid expectations of pause on interest rate after three consecutive reduction totalling 100 basis points. The RBI MPC panel headed by Malhotra, started the three-day deliberation on the monetary policy on Monday.
Experts were of the view that the central bank may opt for a status quo this time and wait for more macro data after the announcement by the US to impose 25 per cent tariff on Indian imports beginning August 7.
The members of MPC are as follows: Sanjay Malhotra (Governor), Poonam Gupta (Deputy Governor), Rajiv Ranjan (Executive Director) and three external members – Nagesh Kumar (Director and Chief Executive, Institute for Studies in Industrial Development, New Delhi), Saugata Bhattacharya (Economist), Ram Singh (Director, Delhi School of Economics).
