RBI MPC Meeting 2023: Key highlights so far from the MPC review

RBI Governor

The six-member Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on June 8 kept the policy repo rate unchanged at 6.5 percent in a unanimous decision.

The RBI retains the withdrawal-of-accommodation stance, Governor Shaktikanta Das said announcing the MPC decision.

Reserve Bank of India Monetary Policy Committee LIVE: Summary of MPC announcements made by Governor Shaktikanta Das:

GDP

— GDP projection for in FY24 stays unchanged at 6.5 percent, says RBI Governor Das.

— RBI chief Das said real GDP growth is projected at 6.5 percent for FY24, — Q1 at 8 percent , Q2 at 6.5 percent, Q3 at 6 percent and Q4 at 5.7 percent.

— Pace of global economic activity to decelerate due to geopolitical situation.

Also Read: RBI MPC Meet : GDP growth forecast for 2023-24 retained at 6.5%

Inflation

— Headline inflation is still above target and is expected to remain so according to our projections.

— RBI Governor Das said: "Our goal is to achieve the inflation target of 4 per cent and keeping inflation within the comfort band of 2-6 percent is not enough."

— The MPC has slashed inflation aim to 5.1 percent from 5.2 percent forecast in April policy.

— MPC decided by a majority of five out of six members to remain focused on withdrawal of accommodation.

RBI MPC Meeting 2023: Key takeaways

Also Read: RBI Policy: MPC retains repo rate at 6.5%, sounds caution on inflation

CAD

— Current account deficit (CAD) is likely to have moderated further and should be eminently manageable in 2023-24, says the central bank chief.

Forex

— Forex reserves stood at at $595.1 billion as on June 2.

— Indian rupee has remained stable since January this year and domestic demand condition remains supportive of growth.

— Indian economy and financial sector stand out as resilient. Domestic macro fundamentals are strengthening.

Also Read: RBI Policy: RBI lowers inflation forecast for FY24 to 5.1%, makes big cut in Q1 estimate

Liquidity

— Average system liquidity is in surplus mode and could increase as Rs 2,000 notes get deposited in banks, says RBI Governor Das.

— Net inflow in non-resident deposits increased to $8 billion in FY'23 from $3.2 billion in the previous year.

RuPay forex card

— The apex bank to issue RuPay forex cards, guidelines on default loss guarantee arrangement in digital lending.

— Governor Das said the RBI will issue norms on default loss guarantee arrangement in digital lending for orderly development of the eco-system and improve credit penetration.

— The central bank proposes to expand the scope and reach of e-RUPI vouchers by permitting non-bank Prepaid Payment Instrument (PPI) issuers to issue e-RUPI vouchers.