Reserve Bank Governor Shaktikanta Das unveiled the latest monetary policy decision on June 7 and announced that the benchmark interest rates remained unchanged at 6.5 percent, a figure held steady since February 2023.
The Monetary Policy Committee (MPC), which consists of three RBI and three external members, kept the repo rate unchanged at 6.5 percent for an eighth straight policy meeting.
Four out of six MPC members voted in favour of the repo rate decision, Governor Shaktikanta Das said in his statement.
The MPC last changed rates in February 2023. Annual retail inflation eased slightly to 4.83 percent in April from 4.85 percent in March, but was still well above the MPC's target.
The economy expanded at a faster-than-expected pace of 7.8 percent in the March quarter, official data showed last week.
Here are the highlights from Shaktikanta Das' speech:
* RBI projects real GDP growth at 7.2 percent for FY25, says Das.
* RBI remains committed for aligning inflation to 4 percent on a durable basis, says Governor Das.
* Inflation growth balance moving favourably, says RBI Governor Das after MPC meeting.
* RBI projects CPI inflation at 4.5 percent for FY25.
* If 7.2 percent growth materalises this fiscal, it would be the 4th consecutive year when growth is higher than 7 percent, say RBI Governor.
* Second quarter of current fiscal likely to see some correction in retail inflation: RBI Governor Das
* Assuming normal monsoon, the inflation expected to be 4.5 percent in current fiscal with risk evenly balanced: RBI governor.
* RBI projects retail inflation in Q1 of FY25 at 4.9 percent, Q2 at 3.8 percent, Q3 at 4.6 percent, and Q4 at 4.5 percent: Governor Das.
* Normal south-west monsoon expected to boost kharif production, enhance water storage in reservoirs: RBI Governor.
* Annual financial results of FY24 indicate banking system is sound and resilient: RBI Guv Das.
* RBI to remain nimble and flexible in liquidity operations: RBI Guv Das
* Relative stability of rupee bears testimony to India's sound and resilient economic fundamentals: RBI Governor Das
*RBI proposes setting up of a digital payments intelligence platform for real-time data sharing across the system, says Das.
* RBI proposes to rationalise Foreign Exchange Management Act guidelines related to export-import of goods and services: Governor Das.
* Gross Foreign Direct Investment remains robust but net FDI moderated in FY24: RBI Governor Das.
* RBI raises threshold of bulk deposit in banks to Rs 3 crore from Rs 2 crore earlier, says RBI Governor.
* On inflation, we are on right track, squarely focussed on inflation management, says RBI Governor.
* Monetary policy has greater elbow room to pursue price stability, says RBI Governor Das.
* India's foreign exchange reserves hit a record high of $651.5 billion as of May 31, the governor of the central bank said on Friday. "India's external sector remains resilient and the key external vulnerability indicators continue to improve. Overall, we remain confident of meeting our external financing requirements comfortably," Shaktikanta Das
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