A look at highlights of RBI's bi-monthly monetary policy

The Reserve Bank of India on Thursday projected a GDP growth of 7 per cent for 2024-25 financial year, which is lower than the 7.3 per cent expansion estimated for the current fiscal. Announcing the bi-monthly monetary policy, RBI Governor Shaktikanta Das said rural demand continues to gather pace, urban consumption remains strong and investment cycle is gaining steam on the back of increased capex. The RBI also projected a lower inflation of 4.5 per cent in the next financial year, than 5.4 per cent in 2023-24, provided there is normal monsoon.

• Here’s a look at the other highlights of RBI’s bi-monthly monetary policy announced by the RBI Governor: * Benchmark interest rate or repo rate kept unchanged at 6.5 pc * Monetary transmission by financial institutions still remains incomplete * Current economic momentum to sustain in the next fiscal * Recovery in rabi sowing, sustained profitability in manufacturing, resilience of services to support economic activity in 2024-25 * Investment cycle gaining steam, signs of revival in private sector capex * Indian economy making confident progress on strong, sustained growth path * Rural demand continues to gather pace, urban consumption remains strong * Govt adhering to fiscal consolidation path; domestic economic activity strong * Uncertainty in food prices continue to impinge on headline inflation * Increasing geopolitical tension impacting supply chain, putting pressure on commodity prices * Forex reserve at USD 622.5 billion; comfortable for meeting foreign obligations * Domestic financial system remains resilient with a healthy balance sheet * Regulated entities should accord highest priority to compliance, consumer interest protection * RBI to introduce offline e-rupee transactions soon in areas with limited internet connectivity * Exchange rate of Indian rupee remained fairly stable in the current fiscal * Next monetary policy committee (MPC) meeting scheduled during April 3-5, 2024.