June 08, 2023 / 13:11 IST
RBI Monetary Policy LIVE Updates: The monetary policy committee (MPC), which has three members from the RBI and three external members, has left the repo rate unchanged at 6.50 percent for a second straight meeting. Governor Shaktikanta Das said the MPC voted unanimously to leave repo rate unchanged. Standing Deposit Facility Rate remains at 6.25%; while Marginal Standing Facility Rate and Bank Rate also unchanged at 6.75%. MPC voted 5 members to 1 to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, Das said. The central bank has raised repo rates by a total of 250 bps since May 2022. The steady increase was meant to fight inflation -- which has finally began subsiding.
Top 10 takeaways from Governor Shaktikanta Das' speech
-- Headline inflation on a downward trajectory, seen above 4% in FY24
-- Will further act as required to anchor inflation expectations
-- Avg liquidity in surplus mode, could increase as Rs 2k note get deposited
-- Rural demand on revival path; domestic demand supportive of growth
-- Conditions favourable for capex cycle to gain momentum
-- Headwinds from weak demand, global volatility, risk of El Nino
-- Real GDP for FY24 seen at 6.5%
-- Real policy rate continues to be positive
-- CAD expected to have moderated further, should be manageable in FY24
-- Need to maintain Arjuna's eye on evolving inflation situation
