Stay updated with live updates of the RBI’s Monetary Policy Committee (MPC) Meeting December 2024. Follow Governor Shaktikanta Das’s announcements on repo rate, interest rates, CPI inflation as well as GDP projections.
RBI Monetary Policy Meeting December 2024 Live Updates: RBI Governor Shaktikanta Das is set to announce the RBI MPC’s decision on the repo rate at 10 am today, Friday. Most analysts expect the status quo on the repo rate at 6.50% for the 11th time in a row. However, Nomura sees a 25-basis-point rate cut. Most analysts also feel that the RBI might cut CRR on Friday.
In the previous monetary policy in October, the RBI MPC had kept the repo rate unchanged at 6.5%. However, it had changed the monetary policy stance from ‘withdrawal of accommodation’ to ‘neutral’.
The repo rate is 6.50%, unchanged since February 2023. CRR remains at 4.5%, while the statutory liquidity ratio stands at 18 percent.
The repo rate is the interest rate at which the RBI lends money to banks to meet short-term needs. CRR is the percentage of a bank’s total deposits that must be kept in cash with the RBI, whereas SLR is the portion of a bank’s net demand and time liabilities (deposits) that must be held in the form of gold, cash, or government-approved securities.
The RBI is mandated to keep CPI inflation in the range of 2-6%. It uses repo rate, reverse repo rate, CRR, and other instruments to control inflation.
Currently, the RBI projects the CPI inflation at 4.5% for FY25. According to analysts, the central bank may have to revise it upwards to 4.8%, due to a recent spike in the inflation rate to 6.2% in October.
On the GDP growth front, the central bank had projected a 7.2% GDP growth for FY25. It is likely to be revised on Friday following the latest September 2024 quarter numbers that showed India’s GDP growth slowing to a seven-quarter low of 5.4%.
