The Business Bytes
New Delhi, October 9, 2024 (TBB Bureau): The Reserve Bank of India (RBI) has once again opted to maintain the repo rate at 6.5 per cent, signaling a steady approach amid global economic uncertainties. The decision came during the Monetary Policy Committee (MPC) meeting on Wednesday, where the central bank also retained its FY25 real GDP growth forecast at 7.2%.
RBI Governor Shaktikanta Das, while addressing the media, highlighted that inflation is expected to inch up to 4.8 per cent in the third quarter of this fiscal year. “The inflation horse has been brought to the stable within the tolerance band. We have to be careful about opening the gate,” he said, indicating a cautious stance on inflation management despite the gains made.
While global markets have been responding to the US Federal Reserve’s recent 50 basis point rate cut, the RBI took a different approach, holding steady and shifting its stance to “neutral” from the earlier “withdrawal of accommodation.” Governor Das noted that the Indian rupee continues to be one of the least volatile currencies, underscoring the resilience of India’s financial system.
Banks and Non-Banking Financial Companies (NBFCs), Das stressed, should prioritize addressing inoperative accounts, combatting mule accounts, and strengthening their cybersecurity frameworks to mitigate potential risks.
