The Reserve Bank of India’s meeting in February 2024 made some important decisions. They decided to keep the repo rate unchanged at 6.5%. This decision came because inflation is still higher than their target of 4%. It’s the sixth time in a row they’ve kept the rate the same. The repo rate is the interest rate banks pay when borrowing money from the RBI.
They also talked about inflation, saying it’s expected to be around 5.4% for this year and around 4.5% for next year. They’re expecting the economy to grow by 7% next year.
Regarding Paytm, RBI Governor Shaktikanta Das said they’ve been working with Paytm for a while. He mentioned that all the actions taken by the RBI are to make sure the financial system is stable and to protect customers’ interests.
RBI MPC Meeting February 2024 Key Highlights & Outcomes:
- The RBI’s Monetary Policy Committee decided to keep the repo rate steady at 6.5%.
- Inflation for this year is expected to be 5.4%, dropping to 4.5% next year.
- The RBI predicts a 7% growth in real GDP for next year.
- The MPC will continue its focus on withdrawing its supportive stance.
- RBI Governor Shaktikanta Das notes an increase in investments, boosted by government spending.
- Inflation is projected at 5.4% for this year and 4.5% for next year.
- Geopolitical tensions are affecting supply chains and pushing up commodity prices, especially crude oil.
- Lenders must provide clear loan information to retail and MSME borrowers, according to Das.
- The RBI plans to introduce offline e-rupee transactions soon.
- The RBI will implement principal-based authentication to enhance digital payment security.
- A review of the regulatory framework for electronic trading platforms is on the RBI’s agenda to facilitate access to offshore products in Indian Rupees.
